Individuals ’ Wage Changes in Australia 1997 - 2000

This paper examines Australian household data from over 4000 individuals to assess how downwardly flexible nominal wages have been during the period 1997 to 2000. The data indicate that there is considerable downward rigidity. Only 7.4 per cent of workers who are still working the same hours in the same job experienced a cut in pay over the previous year. People in lowincome households, unskilled and part-time workers and workers reliant upon the Safety Net (i.e. their wages are determined solely by award) are more likely to have received a pay cut than others.