RDP 2000-08: Nominal Wage Rigidity in Australia Appendix B: Comparing Broad Measures of Remuneration

To establish whether our broad measure of earnings, total pay, would display greater flexibility if it included explicit performance-based pay, we compare the distribution of changes in total pay with total employee reward. (Total employee reward equals total pay plus bonuses, commissions and incentive payments.) As shown in Figure B1, the differences are slight and do not overturn our result that broader measures of earnings also display downward rigidity.