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How Much Do Tradespersons Really Earn?

Author

Listed:
  • Tom Karmel

    (Flinders University)

  • Ben Braysher

    (National Centre for Vocational Education Research)

Abstract

A popular view is that tradespersons’ earnings compare favourably with those with university education. This view is not borne out by wage data, but a common rejoinder is that it is the self-employed tradespersons who make the ‘big’ money (and probably under-report their income). These ideas are examined by analysing household expenditure data in conjunction with income data from the Australian Bureau of Statistics’ Household Expenditure Survey and the Survey of Income and Housing. The data also allow us to look at wealth across occupations. Our findings are that neither expenditure data nor wealth data change significantly the relativities between the trades and occupations more associated with higher education. While no doubt there are some very rich tradespersons, on average those with university degrees earn more than those with trade qualifications. And there is little evidence to suggest than on average self-employed tradespeople ‘do better’ than those who are employees.

Suggested Citation

  • Tom Karmel & Ben Braysher, 2015. "How Much Do Tradespersons Really Earn?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 18(3), pages 329-344.
    • Handle: RePEc:ozl:journl:v:18:y:2015:i:3:p:329-344
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    References listed on IDEAS

    as
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    4. Hanglberger, Dominik & Merz, Joachim, 2011. "Are Self-Employed Really Happier Than Employees? An Approach Modelling Adaptation and Anticipation Effects to Self-Employment and General Job Changes," IZA Discussion Papers 5629, Institute of Labor Economics (IZA).
    5. Erik Hurst & Geng Li & Benjamin Pugsley, 2014. "Are Household Surveys Like Tax Forms? Evidence from Income Underreporting of the Self-Employed," The Review of Economics and Statistics, MIT Press, vol. 96(1), pages 19-33, March.
    6. Marco Caliendo & Frank Fossen & Alexander Kritikos, 2014. "Personality characteristics and the decisions to become and stay self-employed," Small Business Economics, Springer, vol. 42(4), pages 787-814, April.
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    More about this item

    Keywords

    Wage level and structure; professional labour markets; occupational licensing;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations

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