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Disappearing Middle or Vanishing Bottom? A Comment on Gregory

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  • GRANT BELCHAMBER

Abstract

The ‘disappearing middle’ hypothesis suggests a relative growth of both low paid and high paid jobs, with a relative decline in the number of jobs in the middle of the distribution. The methodology underpinning Gregory's 1993 results (which supported the hypothesis for the Australian case) is challenged and an alternative approach outlined. The results show no ‘disappearing middle’ between 1985 and 1991 in Australia, when recorded job growth was substantial. This is pertinent to discussion of the effect of institutions and minimum wage laws on labour market outcomes.

Suggested Citation

  • Grant Belchamber, 1996. "Disappearing Middle or Vanishing Bottom? A Comment on Gregory," The Economic Record, The Economic Society of Australia, vol. 72(218), pages 287-293, September.
    • Handle: RePEc:bla:ecorec:v:72:y:1996:i:218:p:287-293
    DOI: 10.1111/j.1475-4932.1996.tb00960.x
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    References listed on IDEAS

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    1. R.G. Gregory, 1993. "Aspects of Australian and US Living Standards: The Disappointing Decades 1970–1990," The Economic Record, The Economic Society of Australia, vol. 69(1), pages 61-76, March.
    2. Dickens, Richard & Machin, Stephen & Manning, Alan, 1999. "The Effects of Minimum Wages on Employment: Theory and Evidence from Britain," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 1-22, January.
    3. Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-1381, September.
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    Cited by:

    1. Jeff Borland, 1999. "Earnings Inequality in Australia: Changes, Causes and Consequences," The Economic Record, The Economic Society of Australia, vol. 75(2), pages 177-202, June.

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