International differences in low-paid work

Like the United States and the United Kingdom, Canada has a higher proportion of low-paid jobs than Australia and most countries in continental Europe. While the differences with continental Europe highlight different approaches to the labour market, the much lower rate of low-paid work in Australia is more puzzling since that country shares many similarities with Canada. Differences in wage-setting mechanisms appear to play a role in explaining the disparity in rates of low-paid jobs.