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Wage Determination In Australia *
Author(s) -
SIMES R.M.,
RICHARDSON C.J.
Publication year - 1987
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1987.tb00646.x
Subject(s) - unemployment , overtime , economics , labour economics , wage , wage bargaining , efficiency wage , wage growth , phillips curve , face (sociological concept) , macroeconomics , sociology , social science
This paper examines whether a stable expectations‐augmented Phillips curve exists for Australia. High real wages in the face of continuing high unemployment over the past decade have led to suggestions that the level of unemployment has little effect on wage determination, with the bargaining process taking place between employers and those employees in ‘secure employment’. Results from aggregate data suggest that the level of unemployment is relevant to wage determination. In addition, the impact of overtime on the growth in money wages is consistent with the view that those in secure employment are influenced by labour market conditions .