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Determining the Minimum Wage: A Household Expenditure Approach

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  • D.H. Plowman
  • J. Taplin
  • J. Henstridge

Abstract

The establishment of a minimum wage, a wage below which no employer can pay able bodied full-time employees, is a common feature in most industrialised societies. In many of these societies the minimum wage is determined by government fiat. In Australia, the prevailing method of minimum wage determination has been by way of industrial tribunals. In their minimum wage role both governments and industrial tribunals need to determine minimum wage criteria as well as mechanisms for operationalising the criteria This paper proposes ‘reasonable living’ needs criteria for minimum wage determination. By analysing the Household Expenditure Survey it also suggests the amount which would constitute a ‘reasonable living’ minimum wage for labourers in Australia.

Suggested Citation

  • D.H. Plowman & J. Taplin & J. Henstridge, 1996. "Determining the Minimum Wage: A Household Expenditure Approach," The Economic and Labour Relations Review, , vol. 7(2), pages 254-261, December.
    • Handle: RePEc:sae:ecolab:v:7:y:1996:i:2:p:254-261
    DOI: 10.1177/103530469600700206
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