This paper examines the wage curve in Australia. Regressions for weekly ear
nings are estimated on a pooled cross-section data set for 1982 to 1994/95.
Using the preferred regression specification it is found that the elastici
ty of weekly earnings with respect to state-level rates of unemployment is
-0.07 to -0.09. These findings are robust to a variety of modifications to
the regression specification. A comparison of Australia, the US and UK is u
ndertaken to examine how differences in wage-setting institutions between t
hose countries might affect wage curve estimates.