The Determinants of Relative Wage Change in Australia

15 Pages Posted: 24 Apr 2002

See all articles by Elizabeth Webster

Elizabeth Webster

Swinburne University of Technology; University of Melbourne - Melbourne Institute of Applied Economic and Social Research

Yi-Ping Tseng

University of Melbourne - Melbourne Institute of Applied Economic and Social Research

Abstract

This article uses data from 3500 Australian workers to investigate which factors have had a significant influence on microeconomic wage growth over the years 1997 to 2000. The relative importance of four types of factors, outside incomes, demand for labour, workers' relative bargaining strength and category of wage contract, are compared. Basic individual demographic characteristics and some indicators of workers' bargaining power provided most of the explanation for wage changes. Proxy variables for labour demand, while significant and correctly signed, were small in magnitude.

Suggested Citation

Webster, Elizabeth M. and Tseng, Yi-Ping, The Determinants of Relative Wage Change in Australia. Australian Economic Review, Vol. 35, No. 1, pp. 70-84, March 2002. Available at SSRN: https://ssrn.com/abstract=308781

Elizabeth M. Webster (Contact Author)

Swinburne University of Technology ( email )

Cnr Wakefield and William Streets, Hawthorn Victor
3122 Victoria, Victoria 3122
Australia

University of Melbourne - Melbourne Institute of Applied Economic and Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

Yi-Ping Tseng

University of Melbourne - Melbourne Institute of Applied Economic and Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

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