The political economy of minimum wage setting

The Factories and Shops Act of Victoria (Australia), 1896-1913

Datos Bibliográficos

ID3457204
AutoresAndrew J Seltzer (0000-0002-9826-7082, Royal Holloway, University of London; London School of Economics; Centre for Economic History (ANU); IZA, autor de correspondencia)
Año2024
Fecha de publicación2024-10-16
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Economic History Review (JOURNAL)
Identificadores de la revistaISSN: 0013-0117 • E-ISSN: 1468-0289
EditorialWiley (PUBLISHER • GB)
DOI10.1111/ehr.13390
OpenAlexW4403466789
IdiomaEN
Referencias citadas31

The Victorian Factories and Shops Act of 1896, the second minimum wage law in the world, empowered administrative agencies ('Special Boards') to set trade-specific minimum rates on the basis of age, sex, and occupation. Some Victorian supporters of minimum wages looked to end sweating and protect women and children, while others sought to use the law to protect adult men. Opponents argued that they would disrupt labour markets, increasing employers' costs and creating unintended consequences for workers. Evidence from actual minimum wages suggests that boards were loosely constrained by market factors, but also that they had some discretion. Some Special Boards essentially followed the market for their trades while others set rates that were binding for some workers. To the extent that minimum rates were binding, they tended to reduce inequality among adult male workers, particularly after a 1907 federal law established a living wage covering employers with operations in multiple states. However, they also increased inequality across groups, increasing wages of adult men relative to those of women and youths. The act formally institutionalized gender-based pay differences, a practice that continued in Australian minimum wage setting for more than 70 years

Economics · Economy · Labour economics · Minimum wage · Political science · Politics · Wage · Australian History and Society · Historical Economic and Social Studies · Labor Movements and Unions · Law