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Individuals’ Wage Changes in Australia 1997-2000

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  • Yi-Ping Tseng

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

This paper examines Australian household data from over 4000 individuals to assess how downwardly flexible nominal wages have been during the period 1997 to 2000. The data indicate that there is considerable downward rigidity. Only 7.4 per cent of workers who are still working the same hours in the same job experienced a cut in pay over the previous year. People in low-income households, unskilled and part-time workers and workers reliant upon the Safety Net (i.e. their wages are determined solely by award) are more likely to have received a pay cut than others.

Suggested Citation

  • Yi-Ping Tseng, 2001. "Individuals’ Wage Changes in Australia 1997-2000," Melbourne Institute Working Paper Series wp2001n04, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2001n04
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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2001n04.pdf
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    References listed on IDEAS

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    6. Jacqueline Dwyer, 2003. "Nominal Wage Rigidity in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 6(1), pages 5-24, March.
    7. Bewley, Truman F., 1998. "Why not cut pay?," European Economic Review, Elsevier, vol. 42(3-5), pages 459-490, May.
    8. David E. Lebow & Raven E. Saks & Beth Anne Wilson, 1999. "Downward nominal wage rigidity: evidence from the employment cost index," Finance and Economics Discussion Series 1999-31, Board of Governors of the Federal Reserve System (U.S.).
    9. Tim R. L. Fry & Mark N. Harris, 2000. "A Model for Ordered Data with Clustering of Observations," Melbourne Institute Working Paper Series wp2000n02, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    10. McLaughlin, Kenneth J., 1994. "Rigid wages?," Journal of Monetary Economics, Elsevier, vol. 34(3), pages 383-414, December.
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    Cited by:

    1. Smith, Jennifer C., 2002. "Pay cuts and morale: a test of downward nominal rigidity," Economic Research Papers 269462, University of Warwick - Department of Economics.

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