Labour Market Inequality in Australia

Abstract

This article reviews developments in labour market inequality in Australia. First, descriptive information on changes in labour market inequality and on the causes of those changes is integrated with a summary of findings from recent research. Second, the effect of changes in labour market inequality on income inequality is evaluated. Third, evidence on differences in earnings and employment outcomes between specific groups – by gender, Indigenous status and country of birth – is considered. Finally, some suggestions for future research are presented.

Why Are Australian Wages Lagging and What Can Be Done About It?

“…Manufacturing, which in the past provided a leading area of union recruitment, has shrunk greatly in the face of import competition, especially from low‐wage countries, falling from 18 per cent in 1985 to 8 per cent in 2016 (Reserve Bank of Australia ). But other industries have also suffered a fall in union density from globalisation, although not to the same extent (Borland ). Where import competition is strong, an effective restraint is imposed on unions to press for wage increases backed by strike action.…”

The Drivers of Life‐Cycle Wage Inequality in Australia

“…While 9 See Guvenen (2011) and Heathcote et al (2009) for recent surveys of this research area. 10 Borland and Coelli (2016) provide a recent survey of Australian empirical studies in this area. Some earlier Australian studies, such as Barrett et al (2000), have also looked at wage dynamics, but were limited by the lack of panel data at the time.…”

“… Borland and Coelli () provide a recent survey of Australian empirical studies in this area. Some earlier Australian studies, such as Barrett et al .…”

Benefitting from globalisation and technological change in Australia

“…Australia has a particular form of casual work; workers are not entitled to paid sick or holiday leave but are guaranteed additional pay. According to Borland and Coelli (2016) this form of employment has been declining since the early 2000s (Figure 1.12). Furthermore, job duration has, if anything, risen (Figure 1.13).…”