Non-Standard Time Wage Premiums and Employment Effects: Evidence from an Australian Natural Experiment
- Publication Type:
- Journal Article
- British Journal of Industrial Relations, 2019, 57 (1), pp. 33 - 61
- Issue Date:
© 2018 John Wiley & Sons Ltd. We examine the effect of increasing Sunday wage premiums on retail industry employment in Australia, exploiting a quasi-experimental policy change across two neighbouring states. Using both aggregate and individual-level data, we adopt a difference-in-difference regression framework to estimate the causal impact of the policy change on employment outcomes. We find no evidence of changes in the total number of employees, and no effect on hours per employee in the years following the policy implementation. However, there appeared to be a decline in hours per employee in the announcement year of the policy change. Overall, it appears that in an industry dominated by part-time and casual employment, any adjustment to the new Sunday wage rates occurred principally through flexibility in hours, rather than in the number of employees.
Please use this identifier to cite or link to this item: