Why are Australian Wages Lagging and What Can Be Done About it?

16 Pages Posted: 5 Jun 2018  

Joe Isaac

The University of Melbourne - Department of Management

Date Written: June 2018

Abstract

Wages in Australia have lagged behind the growth in labour productivity in recent years. This has been associated with a significant change in the distribution of income in favour of high‐income earners. Although a number of factors appear to have been involved in this development, an important explanation is also to be found in the change in the balance of power in favour of employers and against workers and unions. As changes in industrial relations laws have contributed substantially to this imbalance, a return to the earlier laws may be necessary to restore the institutional mechanism for wages growth.

Suggested Citation

Isaac, Joe, Why are Australian Wages Lagging and What Can Be Done About it? (June 2018). Australian Economic Review, Vol. 51, Issue 2, pp. 175-190, 2018. Available at SSRN: https://ssrn.com/abstract=3188515 or http://dx.doi.org/10.1111/1467-8462.12270

Joe Isaac (Contact Author)

The University of Melbourne - Department of Management

200 Leicester Street
Melbourne, Victoria 3053
Australia

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