Fair Work Commission

Overview

Fair Work Commission staff in the Workplace and Economic Research Section of the Tribunal Services Branch may conduct or commission research as part of the annual wage review. On 30 September 2014, the Expert Panel outlined its medium-term research program following a process where interested parties were invited to submit proposals and participate in consultations. As announced in a Statement on 19 November 2015, a number of these projects were completed to inform the Annual Wage Review 2015–16.

In undertaking the research program, the Workplace and Economic Research Section consults a Minimum Wages Research Group comprising a chair from the Section and representatives nominated by:

• Australian Chamber of Commerce and Industry (ACCI)
• Australian Industry Group (Ai Group)
• Australian Council of Social Service (ACOSS)
• Australian Council of Trade Unions (ACTU)
• Australian Government
• state and territory governments

In addition to research projects, a statistical report and research reference list are also published for the annual wage reviews.

Research reference list

The Research reference list includes Australian and international literature relevant to the minimum wages and modern awards objectives. The list only encompasses relevant literature published over the year to March 2016. This page contains a link to the current version only.

Research published for the 2015–16 Review

An international comparison of minimum wages and labour market outcomes

National Institute of Labour Studies (NILS), Flinders University

The report, An international comparison of minimum wages and labour market outcomes (PDF), provides a quantitative investigation that compares the labour market outcomes of countries similar to Australia with relatively high and low minimum wages.

This involves comparing particular employment indicators, including:

• unemployment and underemployment rates
• employment to population ratios
• labour market transitions (between low paid jobs and unemployment)
• the minimum wage bite
• average earnings,
• and the distribution of earnings for groups that are relatively more likely to be low paid.

Pay equity research

Research undertaken for the Pay Equity Unit Work Program 2014–15 provides information to inform matters relating to pay equity under the Fair Work Act 2009 including the annual wage review.

The following research will be published on the Pay equity research and AWRS Conference 2015 pages of the Commission’s website as it becomes available.

AWRS Conference papers

Papers presented at the AWRS Conference on 25 June 2015 will be published as they are finalised by the authors.

Earnings & characteristics of employees by gender & industrial arrangement

The Earnings and characteristics of employees by gender and industrial arrangement report addresses 3 research questions:

• How do earnings differ by gender?
• What are the characteristics of female and male workers?
• What are the characteristics of firms that employ female and male workers?

The exploration of these questions particularly focuses on variation between employees by method of setting pay (award-reliant employees, employees on over award arrangements and employees on collective agreements).

Low-paid women’s workforce participation decisions and pay equity

This research examines a range of influences and constraints on low-paid women's workforce participation decisions (to work or not work, hours of work, extended leave periods and type). It also explores the impact, if any, of women's workforce participation decisions on pay equity outcomes.

The Low-paid women’s workforce participation decisions and pay equity report addresses the following research questions:

• What are the characteristics of low-paid women, and how do they differ from high-paid women, or from low-paid and high-paid men? Namely, what are their personal characteristics, family characteristics and current job characteristics (including the method of setting pay in their current job), as well as their work histories and future work experiences?
• What characteristics and circumstances impact on or constrain low-paid women’s workforce participation decisions? How do their personal and family characteristics, as well as current job characteristics (including the method of setting pay) impact on their future decisions to work or not to work or how many hours to work?
• What effect do past workforce participation decisions have on their pay and employment outcomes, and on pay equity? What role do other personal or family characteristics, as well as past job characteristics (including method of setting pay) play?

Future research

The following research projects will be undertaken to inform future annual wage reviews. The timeframes for this research will be dependent on more detailed scoping of the projects.

The youth labour market

This project would involve an analysis of the characteristics of the youth labour market, including comparisons over time. Characteristics would include employment type, hours worked, educational attainment, and industry and occupation of those employed. Differences in unemployment and underemployment between youth who are and who are not full-time students would also be explored. Analysis would be performed using various Australian data sources. A literature review on the causes of youth unemployment may also be included.

The characteristics of the underemployed and unemployed

This project would track the changes over time in the extent of underemployment for those who are employed part-time, and its relation with unemployment. It would compare and analyse the characteristics of persons who are underemployed with persons unemployed, including over time. The characteristics that would be considered include gender, age, student status, location, industry and occupation. For underemployed workers, the characteristics for analysis would also include method of setting pay, hours worked and work schedules. It would seek information on the duration of underemployment and mobility to alternative employment states.

Previous research

Research material from past annual wage reviews is available.

Go to a complete list of previous research.