Do Incomes Policies Restrain Wage Inflation? Some Evidence From Australia, Canada, and the United States

Mahmood A. Zaidi

The Economic Record, 1986, vol. 62, issue 4, 468-484

Abstract: The purpose of this paper is to reassess the impact of incomes policies on wages in Australia, Canada and the United States. These countries differ in institutional arrangements as well as in the form and timing of incomes policies adopted. Three methods of assessing the effect of incomes policies have been used: the simulation approach, the intercept‐shift dummy variable approach, and the rotation approach. The results indicate that incomes policies exhibited considerable diversity in the effectiveness among the three countries. The results also show a consistent restraining influence of labour market variables on wage inflation.

Date: 1986
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