Real wages in Australia and Canada, 1870-1913: globalization versus productivity

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  • David Greasley
  • Jakob Brøchner Madsen
  • Les Oxley
Australia's and Canada's real wage experiences between 1870 and 1913 were distinctive. Faster productivity growth underpinned Canada's overtaking of Australia's wage levels. The globalization forces of migration and trade also shaped their comparative wages, principally by reducing wage growth in Canada. Immigration increased slightly Australia's real wages, but reduced wage levels in Canada, and tempered there the beneficial effects of rising productivity and improving terms of trade. In contrast, wage earners' share of national income rose after 1890 in Australia, with the productivity slowdown hitting chiefly rents and profits. Distributional shifts favouring wage earners in Australia, and the depressing effects of mass immigration on wages in Canada, limited Canada's wage lead before 1914, despite her faster productivity growth
Original languageEnglish
JournalAustralian Economic History Review
Volume40
Issue number2
Pages (from-to)178-198
ISSN0004-8992
DOIs
Publication statusPublished - 2000

ID: 148543