A Wage Curve for Australia?

Steven Kennedy and Jeff Borland

Oxford Economic Papers, 2000, vol. 52, issue 4, 774-803

Abstract: This paper examines the wage curve in Australia. Regressions for weekly earnings are estimated on a pooled cross-section data set for 1982 to 1994/95. Using the preferred regression specification it is found that the elasticity of weekly earnings with respect to state-level rates of unemployment is -0.07 to -0.09. These findings are robust to a variety of modifications to the regression specification. A comparison of Australia, the US and UK is undertaken to examine how differences in wage-setting institutions between those countries might affect wage curve estimates. Copyright 2000 by Oxford University Press.

Date: 2000
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Working Paper: A wage Curve for Australia? (1997)
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