This article examines the influence of labour force status, full-time/part-time employment status, educational qualifications, work experience, and occupation as sources of inequality between male and female wages in Australia. A decomposition method is used to identify the effect of these factors on male/ female inequality. This strategy involves successively removing persons who differ with respect to each of these factors from the population under study and then decomposing the inequality in the remaining sub-population into inequality within each sex and inequality between the sexes. This decomposition is done using the I0 inequality index proposed by Theil (1967). The study is based on unit record data from the 1981-82 Income and Housing Survey conducted by the Australian Bureau of Statistics. It finds that a significant proportion of the inequality between the wages of the sexes can be explained by their differences with respect to the factors listed above. Copyright 1988 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.