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Wages and Unemployment in Australia

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  • W. M. CORDEN

Abstract

This paper reviews various models that may be used to analyze the inflation‐unemployment problem in Australia. The focus is on the unemployment problem, rather than on inflation, and on the role of wages, nominal and real, in affecting this problem. Models discussed include the Popular Keynesian, Phillips Curve, Fixed Coefficient and Neoclassical Models. The possibility of increasing returns is considered. Australian evidence bearing on the appropriateness of these models is discussed. The effect of demand expansion on the exchange rate and hence real wages is stressed. Some emphasis is placed on the concept of ‘union‐voluntary’ unemployment. At the end possible solutions to the unemployment problem are summarized.

Suggested Citation

  • W. M. Corden, 1979. "Wages and Unemployment in Australia," The Economic Record, The Economic Society of Australia, vol. 55(1), pages 1-19, March.
    • Handle: RePEc:bla:ecorec:v:55:y:1979:i:1:p:1-19
    DOI: 10.1111/j.1475-4932.1979.tb02197.x
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    References listed on IDEAS

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    1. Challen, D W & Hagger, A J, 1975. "Another Look at Australia's Inflation-Unemployment Trade-Offs," Australian Economic Papers, Wiley Blackwell, vol. 14(25), pages 137-153, December.
    2. Otani, Ichiro, 1978. "Real Wages and Business Cycles Revisited," The Review of Economics and Statistics, MIT Press, vol. 60(2), pages 301-304, May.
    3. Nevile, John W, 1977. "Domestic and Overseas Influences on Inflation in Australia," Australian Economic Papers, Wiley Blackwell, vol. 16(28), pages 121-129, June.
    4. Corden, W M, 1978. "Keynes and the Others: Wage and Price Rigidities in Macro-economic Models," Oxford Economic Papers, Oxford University Press, vol. 30(2), pages 159-180, July.
    5. Gordon, Robert J., 1976. "Recent developments in the theory of inflation and unemployment," Journal of Monetary Economics, Elsevier, vol. 2(2), pages 185-219, April.
    6. Rao, B Bhaskara, 1977. "An Analysis of the Short and Long-run Trade-offs between Unemployment and Inflation and Estimates of the Equilibrium Steady State Unemployment Rate in Australia," Australian Economic Papers, Wiley Blackwell, vol. 16(29), pages 273-284, December.
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    Cited by:

    1. repec:bla:ecorec:v:59:y:1983:i:164:p:1-15 is not listed on IDEAS
    2. P. D. Jonson, 1979. "The State of Australian Economics: Stabilization and Industry Policies: A review article stimulated by F. H. Gruen (ed.), Surveys of Australian Economics, Volume 1," The Economic Record, The Economic Society of Australia, vol. 55(4), pages 297-305, December.
    3. R. G. Gregory & R. C. Duncan, 1980. "High Teenage Unemployment:The Role of Atypical Labour Supply Behaviour," The Economic Record, The Economic Society of Australia, vol. 56(155), pages 316-330, December.
    4. Ian McDonald & Jenny Lye, 2006. "Union Power and Australia’s inflation Barrier, 1965:4 to 2004:3," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 9(3), pages 287-304, September.
    5. J. Mangan & L. Stokes, 1984. "The Determinants of Labour Demand in Australian Manufacturing," South African Journal of Economics, Economic Society of South Africa, vol. 52(3), pages 195-203, September.
    6. Richard H. Snape, 1996. "Distinguished Fellow of the Economic Society of Australia, 1995: Professor Max Corden," The Economic Record, The Economic Society of Australia, vol. 72(216), pages 1-6, March.
    7. W.M. Corden, 1989. "Australian Macroeconomic Policy Experience," The Economic Record, The Economic Society of Australia, vol. 65(2), pages 152-164, June.
    8. Sheila M. Bonnell, 1987. "The Effect of Equal Pay for Females on the Composition of Employment in Australia," The Economic Record, The Economic Society of Australia, vol. 63(4), pages 340-351, December.
    9. J. W. Nevile, 1983. "The Role of Fiscal Policy in the Eighties," The Economic Record, The Economic Society of Australia, vol. 59(1), pages 1-15, March.
    10. W. M. Corden, 1982. "The Wages Push and Macroeconomic Policy: The Dilemmas Ahead," The Economic Record, The Economic Society of Australia, vol. 58(2), pages 111-117, June.
    11. Fisher, Lance A. & Kingston, Geoffrey, 2022. "Medium-run determinants of real wages in Australia," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 1098-1107.
    12. William Coleman, 2006. "A Conversation with Max Corden," The Economic Record, The Economic Society of Australia, vol. 82(259), pages 379-395, December.
    13. W. Corden, 2011. "Ambulance Economics: The Pros and Cons of Fiscal Stimuli," Open Economies Review, Springer, vol. 22(2), pages 235-245, April.

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