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The Relation Between Profits and the Rate of Change of Money Wages in Australia

Author

Listed:
  • Calvin D. Siebert

    (University of Iowa)

  • Mahmood A. Zaidi

    (University of Minnesota, Minneapolis.)

Abstract

Wage determination has been the subject of an immense amount of study and controversy in recent years in Australia. In most of the Australian wage equations, either the profit variable has been omitted or specifically rejected. This study tests the hypothesis that the rate of change of money wages may be influenced by the profit variable. Our results show that profit is an important explanatory variable in the explanation of money wage change in Australia.

Suggested Citation

  • Calvin D. Siebert & Mahmood A. Zaidi, 1984. "The Relation Between Profits and the Rate of Change of Money Wages in Australia," Australian Journal of Management, Australian School of Business, vol. 9(1), pages 121-129, June.
    • Handle: RePEc:sae:ausman:v:9:y:1984:i:1:p:121-129
    DOI: 10.1177/031289628400900106
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    References listed on IDEAS

    as
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    7. McDonald, John, 1975. "Wages and Prices in Australia: On the Short and Long-run Trade-Offs between Inflation and Unemployment," Australian Economic Papers, Wiley Blackwell, vol. 14(25), pages 154-170, December.
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