The Cyclical Behaviour of Real Wages : Evidence from Australia

الملخص EN

This paper analyses the behaviour of real wages over the business cycle for Australia, using quarterly observations for the period 1984 : 1–2008 : 2.

The unobserved cyclical components of prices, real wages, and three other cyclical variables are extracted from the observed time series using Harvey's (1985, 1989) structural time series model.

A model relating these components is estimated, producing results which show that both prices and real wages are procyclical.