Abstract
Industrial relations reforms starting in the late 1980s decentralized wage determination in Australia. Using data from the Australian Bureau of Statistics’ Survey of Education and Training gathered in 1993, before the full effects of decentralization had been realized, and in 2001, after which the impacts of structural changes had become manifested, the study shows the emergence of an inverse relationship between the employer size–wage effect and union/nonunion wage differential among male workers. The relationship is similar to those found in the United States and the UK, other economies with decentralized wage‐setting regimes.
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