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Wage Growth Distribution and Changes over Time: 2001–2018

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  • Guyonne Kalb
  • Jordy Meekes

Abstract

We explore how much wage growth varies among Australian employees and how it has changed over the 2001–2018 period. The results show that, after increasing between 2002 and 2007, wage growth significantly slowed post 2008, and particularly from 2013 onwards, returning to early 2000s levels. Employee age, education, employment contract, occupation and industry explain a large share of differences in wage growth between individuals. Employee occupation is more important post‐2008 than pre‐2008, whereas education is more important pre‐2008. Finally, casual employees receive a wage growth premium during periods of economic upturn and a penalty during downturn.

Suggested Citation

  • Guyonne Kalb & Jordy Meekes, 2021. "Wage Growth Distribution and Changes over Time: 2001–2018," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(1), pages 76-93, March.
    • Handle: RePEc:bla:ausecr:v:54:y:2021:i:1:p:76-93
    DOI: 10.1111/1467-8462.12397
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    1. Ilan Wiesel & Julia de Bruyn & Jordy Meekes & Sangeetha Chandrashekeran, 2023. "Income polarisation, expenditure and the Australian urban middle class," Urban Studies, Urban Studies Journal Limited, vol. 60(14), pages 2779-2798, November.

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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