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Home » wages and hours » Are Sunday penalty rates a job killer? A real-world experiment refutes employers’ claim

Are Sunday penalty rates a job killer? A real-world experiment refutes employers’ claim

If changes in Sunday penalty rates have no significant effect on the number of jobs, then cutting them would do two things.

It would reduce compensation for workers employed at unsociable hours – when that compensation is, for many, very important for meeting normal household expenses. And it would constitute a transfer of income from employees to employers, likely without an offsetting increase in jobs.

The most likely outcome, then, would be retail workers working longer hours for lower earnings, with little or no improvement in the number of jobs.

Serena Yu and David Peetz provide the evidence

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