The Australian Wage System and Its Labor Market Effects

Abstract

In Australia, quasi‐judicial conciliation and arbitration tribunals set the terms and conditions under which the majority of employees work. Many commentators maintain that the activities of these tribunals have significantly affected the county's labor market and the operation of the economy. This paper outlines the distinguishing characteristics of Australia's wage determination system and reviews the research concerning its labor market consequences. Recent evidence suggests that critics of the system may have overstated their case.

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