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The article offers information on the decline in labour share of national income in Australia and the issues with minimum wage policy in the country. Topics discussed include the impact of wage stagnation on the economic growth of the country, low wage growth in the country, and the need for a revitalisation of the minimum wage policy in Australia.

The Australian economy in 2008 was one of contrasts: the resource based states continued to grow at relatively higher rates than the remainder; wage and employment outcomes varied widely for different groups in the labour force; and domestic climate change policies achieved prominence just as a global economic downturn led to rapidly changing macroeconomic conditions. Within this rapidly changing context, ongoing concerns with labour utilization, wage equity and issues of compliance appear likely to grow in significance. [ABSTRACT FROM AUTHOR]

This paper uses data from the HILDA Survey to examine whether or not a minimum wage increase can do much to alleviate poverty or reduce earnings inequality. It is concluded that any poverty reducing effects will be modest. Most low-wage employees are not found living in the poorest households, and among those that are, many combine part-time work with receipt of a government benefit. It is also concluded that minimum wage increases are likely to be of limited effectiveness in protecting the living standards of the 'working poor'. This is because the large increases in hourly wages experienced by most low-wage workers do not always translate into similarly large increases in annual earnings. [ABSTRACT FROM AUTHOR]

The article focuses on the minimum wages debate and policy developments in Australia, Great Britain and the United States. In the last few years, the economic effects of minimum wages have been a very controversial topic. The research of leading economists D. Card and A.B. Krueger which led to suggest that rather than causing a reduction in employment, there is some evidence from the fast-food industry in New Jersey and Pennsylvania, that an increase in minimum wages may even cause a small increase in employment. In the United States, minimum wages were increased by the Bill Clinton administration, with the evidence of Card and Krueger being quoted as evidence in support of the move. In Britain the Tony Blair Government has been elected on a mandate that includes the reintroduction of a minimum wage. While there is some discussion of other effects of minimum wages, for example on income distribution, the main theme in the Policy Forum is the effect of minimum wages on employment.

Discusses the effect of institutions and minimum wage laws on labor market outcomes in Australia. Growth of low- and high-paid jobs; Decline in the number of jobs in the middle of the distribution; Aspects of living standards in Australia and the United States; Earnings inequality in the 1970s and 1980s; Weekly ordinary time earnings of full time adult employees in the private sector.