The belated return of an Australian living wage

Abstract

For much of the twentieth century, a distinctive system of compulsory arbitration sought to balance the competing criteria of workers’ needs and employers’ capacity to pay. This system served Australia well, delivering equitable real wage growth and coordinated responses to economic downturns. Starting in the 1980s, however, public policy shifted to emphasize workplace-level wage determination. The authors examine how this agenda to ‘free up’ the labour market has affected Australia’s ability to maintain, and enforce, its wages safety net. Comparisons with other OECD countries show that Australia’s real minimum wage remains high but has declined in recent years, relative to several other ben..