What are the characteristics of the employers of the low paid in Australia?

Abstract

Service-sector employers from Communications; Accommodation, cafes and restaurants; Personal and other services; Retail trade; and Manufacturing have the highest densities of low-wage employees in Australia. In addition, the majority of all employers of the low paid were service-industry employers. A multivariate analysis found that employers of the low paid were more likely to be small firms employing a disproportionate share of casual labour. Employers of the low paid were more likely to be located in industries where labour costs form a relatively smaller proportion of turnover (possibly because of high material costs) and where there were higher rates of businesses recording a loss of profit. In addition, substantial regional differences remain in the presence of industry controls, indicating that state-level differences in the incidence of low-paying employers cannot be fully accounted for by the other factors.