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The Determinants of Relative Wage Change in Australia

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Author Info
Elizabeth Webster (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)
Yi-Ping Tseng (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

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Abstract

This paper uses micro data from over 4000 Australian individuals to investigate which factors have had a significant influence on microeconomic wage growth over the past 3 years. The relative importance of four type of factors: outside incomes, demand for labour, workers' relative bargaining strength and category of wage contract are compared. Basic individual demographic characteristics (partial substitute variables for outside incomes), and some indicators of workers' bargaining power provided most of the explanation for wage changes. Proxy variables for labour demand, while significant and correctly signed, were small in magnitude. Information on workplace characteristics and the individual's work history were not available.

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Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2000n23.

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Length: 36 pages
Date of creation: Dec 2000
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Handle: RePEc:iae:iaewps:wp2000n23

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  2. Miller, Paul & Mulvey, Charles, 1996. "Unions, Firm Size and Wages," The Economic Record, The Economic Society of Australia, vol. 72(217), pages 138-53, June.
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  5. Kirby, Michael G, 1981. "An Investigation of the Specification and Stability of the Australian Aggregate Wage Equation," The Economic Record, The Economic Society of Australia, vol. 57(156), pages 35-46, March.
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  9. Yi-Ping Tseng & Mark Wooden, 2001. "Enterprise Bargaining and Productivity: Evidence from the Business Longitudinal Survey," Melbourne Institute Working Paper Series wp2001n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
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  15. Nickell, Stephen & Kong, Paul, 1992. "An investigation into the power of insiders in wage determination," European Economic Review, Elsevier, vol. 36(8), pages 1573-1599, December. [Downloadable!] (restricted)
  16. Keating, Michael, 1983. "Relative Wages and the Changing Industrial Distribution of Employment in Australia," The Economic Record, The Economic Society of Australia, vol. 59(167), pages 384-97, December.
  17. Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542. [Downloadable!]
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