The Commission has requested research on the following topics to provide input into current and future minimum wage reviews:
- Dimensions of poverty: income, consumption & wealth – measuring poverty in several ways, the project will investigate the extent to which low-income workers also have low levels of consumption and wealth. It will target young adults on minimum wages living at home, older workers owning their own home and renters, and will identify what proportion of these groups are below poverty lines at a point in time and over time.
- Labour supply response to minimum wage decisions – examines the role of minimum wages in work incentives. The study uses the Melbourne Institute Tax and Transfer Simulator (MITTS) to model effects of minimum wages on labour supply and income distribution. This is a scoping study only, and will report on the feasibility and usefulness of a larger study.
- The effect of minimum wages on gender pay equity – will consist of a review of Australian literature, plus analysis of recent trends by wage distribution, industry, occupation, state and territory.
- Labour mobility of low-paid workers – examines labour mobility in Australia, particularly of low-skilled people, and the implications for the low‑skilled segment of the labour market. It will map spatial, industrial and occupation mobility and identify the significance of wages and employment on these patterns.
- Attitudes towards employment of young workers – a qualitative project that aims to identify which factors are most decisive in influencing employment decisions and relative importance of junior wage rates. It consists of face-to-face interviews with a sample of employers from small, medium and large businesses across regional and metropolitan Victoria, and representatives of relevant trade unions.
- Young people not fully engaged in employment and/or education – explores recent trends in size and composition of the ‘not fully engaged’ group, through secondary analysis of published data. The project reviews existing longitudinal research literature on longer-term outcomes and patterns of transition and will also include primary analysis of relevant longitudinal data, to enable closer identification of groups at risk of poor longer-term labour market outcomes.
- Economic effects of minimum wage adjustments – draws on the HILDA survey and business data to examine the effects of minimum wage adjustments on employment and business outcomes.
- Effects of minimum wage changes on broader wage and inflation outcomes – uses data on wage‑setting practices to better identify the effects of minimum wage changes on broader outcomes.
- The cost of living of low-paid employee households – draws on household expenditure data to compare changes in the cost of living of low-paid employee households to the population as a whole.
- Industry sector research of the:
- Accommodation, cafes and restaurants;
- Health and community services; and
- Retail trade industries.
This comprises a series of studies of industries with significant Pay Scale reliance. The research is designed to:
- Provide detailed economic and labour market profiles, including integrated explanations of trends in employment, wage‑setting arrangements, productivity and business performance. Analyses will consider variations across industries and draw comparisons with the broader economy.
- Capture a broad range of views in relation to minimum wages, in particular employers’ intentions to employ staff and/or change employment practices; the relevance of minimum wages to employees’ income and the extent to which minimum wages are a factor in decisions to seek work in a sector or to leave that sector altogether.
- Identify how businesses respond to an increase in minimum wages following the Commission’s wage-setting decisions. The research focuses on key themes by sector, business size, and local economic conditions.