IDEAS home Printed from https://ideas.repec.org/a/bla/ausecr/v53y2020i4p482-493.html

What is an Australian Job Worth?

Author

Listed:
  • Paul Oslington

Abstract

The value of a job is an important issue for management, human resources, law and public policy, yet we lack good empirical estimates of this value. This article presents a theoretical framework for valuing jobs and estimates the average economic value of an Australian job at approximately $104,000. However, judges awarding compensation for unfair dismissal under the Fair Work Act implicitly value a job at around $10,000. If the economic value estimate is correct then workers place a high value on keeping their job, which has important human resources management implications, such as worker commitment and risk‐taking.

Suggested Citation

  • Paul Oslington, 2020. "What is an Australian Job Worth?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(4), pages 482-493, December.
    • Handle: RePEc:bla:ausecr:v:53:y:2020:i:4:p:482-493
    DOI: 10.1111/1467-8462.12384
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-8462.12384
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-8462.12384?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jeff Borland, 2015. "The Australian Labour Market: The More Things Change …," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 48(3), pages 225-242, September.
    2. Paul Oslington, 2005. "Unemployment and Trade Liberalisation," The World Economy, Wiley Blackwell, vol. 28(8), pages 1139-1155, August.
    3. Alison L. Booth & Yu-Fu Chen & Gylfi Zoega, 2002. "Hiring and Firing: A Tale of Two Thresholds," Journal of Labor Economics, University of Chicago Press, vol. 20(2), pages 217-248, Part.
    4. Jeff Borland, 2012. "Industrial Relations Reform: Chasing a Pot of Gold at the End of the Rainbow?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 45(3), pages 269-289, September.
    5. Paul Oslington & Benoit Pierre Freyens, 2013. "A First Look at Incidence and Outcomes of Unfair Dismissal Claims under Fair Work, WorkChoices and the Workplace Relations Act," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 16(2), pages 295-306.
    6. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-659, May.
    7. Nick Carroll, 2007. "Unemployment and Psychological Well‐being," The Economic Record, The Economic Society of Australia, vol. 83(262), pages 287-302, September.
    8. Marcus Eliason & Donald Storrie, 2009. "Does Job Loss Shorten Life?," Journal of Human Resources, University of Wisconsin Press, vol. 44(2).
    9. Benoit Freyens & Paul Oslington, 2007. "Dismissal Costs and Their Impact on Employment: Evidence from Australian Small and Medium Enterprises," The Economic Record, The Economic Society of Australia, vol. 83(260), pages 1-15, March.
    10. Roger Wilkins & Mark Wooden, 2014. "Two Decades of Change: The Australian Labour Market, 1993–2013," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 47(4), pages 417-431, December.
    11. Kellner, Ashlea & McDonald, Paula & Waterhouse, Jennifer, 2011. "Sacked! An investigation of young workers' dismissal," Journal of Management & Organization, Cambridge University Press, vol. 17(2), pages 226-244, March.
    12. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
    13. Benoit Pierre Freyens & Paul Oslington, 2021. "The impact of unfair dismissal regulation: Evidence from an Australian natural experiment," LABOUR, CEIS, vol. 35(2), pages 264-290, June.
    14. Edward P. Lazear, 2018. "Compensation and Incentives in the Workplace," Journal of Economic Perspectives, American Economic Association, vol. 32(3), pages 195-214, Summer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Benoit Pierre Freyens & Paul Oslington, 2021. "The impact of unfair dismissal regulation: Evidence from an Australian natural experiment," LABOUR, CEIS, vol. 35(2), pages 264-290, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Suppa, Nicolai, 2021. "Unemployment and subjective well-being," GLO Discussion Paper Series 760, Global Labor Organization (GLO).
    2. Lídia Farré & Francesco Fasani & Hannes Mueller, 2018. "Feeling useless: the effect of unemployment on mental health in the Great Recession," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-34, December.
    3. Alison L. Booth & Jan C. Van Ours, 2008. "Job Satisfaction and Family Happiness: The Part‐Time Work Puzzle," Economic Journal, Royal Economic Society, vol. 118(526), pages 77-99, February.
    4. Echavarría-Soto, Juan José & López, Enrique & Ocampo, Sergio & Rodríguez-Niño, Norberto, 2012. "Choques, instituciones laborales y desempleo en Colombia," Chapters, in: Arango-Thomas, Luis Eduardo & Hamann-Salcedo, Franz Alonso (ed.), El mercado de trabajo en Colombia : hechos, tendencias e instituciones, chapter 18, pages 753-794, Banco de la Republica de Colombia.
    5. Chadi, Adrian & Hetschko, Clemens, 2025. "Income or leisure? On the hidden benefits of (un)employment," European Economic Review, Elsevier, vol. 171(C).
    6. Christian Peretti, 2007. "Long Memory and Hysteresis," Springer Books, in: Gilles Teyssière & Alan P. Kirman (ed.), Long Memory in Economics, pages 363-389, Springer.
    7. Wen-Hao Chen & Feng Hou, 2019. "The Effect of Unemployment on Life Satisfaction: A Cross-National Comparison Between Canada, Germany, the United Kingdom and the United States," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 14(4), pages 1035-1058, September.
    8. Marco Caliendo & Robert Mahlstedt & Gerard J. van den Berg & Johan Vikström, 2023. "Side effects of labor market policies," Scandinavian Journal of Economics, Wiley Blackwell, vol. 125(2), pages 339-375, April.
    9. Hassan Bougrine & Mario Seccareccia, 1999. "Unemployment Insurance and Unemployment: An analysis of the aggregate demand-side effects for postwar Canada," International Review of Applied Economics, Taylor & Francis Journals, vol. 13(1), pages 5-21.
    10. Nikolova, Milena & Nikolaev, Boris N., 2021. "Family matters: The effects of parental unemployment in early childhood and adolescence on subjective well-being later in life," Journal of Economic Behavior & Organization, Elsevier, vol. 181(C), pages 312-331.
    11. Benjamin Crost, 2011. "The Effect of Subsidized Employment on Happiness," SOEPpapers on Multidisciplinary Panel Data Research 384, DIW Berlin, The German Socio-Economic Panel (SOEP).
    12. Jan Kleibrink, 2014. "Sick of Your Job?: Negative Health Effects from Non-optimal Employment," SOEPpapers on Multidisciplinary Panel Data Research 718, DIW Berlin, The German Socio-Economic Panel (SOEP).
    13. Sonja C. Kassenboehmer & John P. Haisken-DeNew, 2008. "You’re Fired! The Causal Negative Effect of Unemployment on Life Satisfaction," Ruhr Economic Papers 0063, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    14. Kuhn, Andreas & Lalive, Rafael & Zweimüller, Josef, 2009. "The public health costs of job loss," Journal of Health Economics, Elsevier, vol. 28(6), pages 1099-1115, December.
    15. Matteo Picchio & Michele Ubaldi, 2024. "Unemployment and health: A meta‐analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 38(4), pages 1437-1472, September.
    16. Doris Hanappi & Oliver Lipps, 2019. "Job insecurity and parental well-being: The role of parenthood and family factors," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 40(31), pages 897-932.
    17. Roni Strier, 2014. "Unemployment and Fatherhood: Gender, Culture and National Context," Gender, Work and Organization, Wiley Blackwell, vol. 21(5), pages 395-410, September.
    18. Javier Salinas Jimenez & Maria del Mar Salinas Jimenez & Joaquin Artes Caselles, 2011. "Educación, participación en el mercado de trabajo y bienestar subjetivo: Estudio desde una perspectiva de género," Investigaciones de Economía de la Educación volume 6, in: Antonio Caparrós Ruiz (ed.), Investigaciones de Economía de la Educación 6, edition 1, volume 6, chapter 54, pages 882-897, Asociación de Economía de la Educación.
    19. David A. Spencer, 2023. "Automation and Well-Being: Bridging the Gap between Economics and Business Ethics," Journal of Business Ethics, Springer, vol. 187(2), pages 271-281, October.
    20. Stavrova, Olga & Schlösser, Thomas & Fetchenhauer, Detlef, 2011. "Are the unemployed equally unhappy all around the world? The role of the social norms to work and welfare state provision in 28 OECD countries," Journal of Economic Psychology, Elsevier, vol. 32(1), pages 159-171, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ausecr:v:53:y:2020:i:4:p:482-493. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/mimelau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.