Glossary

Latest release
Wage Price Index: Concepts, Sources and Methods
Reference period
2012

ABS Business Register

The ABS maintained register of businesses and other organisations (government departments, non-profit organisations etc.) operating in Australia. This is used to determine the population for many ABS surveys.

Chaining

The process by which an index series based on one set of expenditure weights is 'linked' to another index series based on a different set of weights, in such a way the change in weights does not, in itself, alter the broader level of the index.

Consumer price index

A general indicator of the rate of change in prices paid by households for consumer goods and services.

Elementary aggregate

Groups of jobs with the same state/territory, sector (private/public) and industry characteristics.

Expenditure weights

A measure of the relative importance of each elementary aggregate, based on an employer's expenditure on wages and salaries. Also referred to as the expenditure share.

Index reference period

The period for which an index is given a value of 100.0.

Price index

A composite measure of the prices of a pre-defined set of items expressed relative to a defined base period.

Price movement

Changes in price levels between two or more periods. Movements can be expressed in money values, as price relatives or as percentage changes.

Price relative

A measure of price movements. The ratio of the price level in one period to the price level in another.

Pure price change

A price change unaffected by changes in the quantity and quality of the item being measured. In the case of the WPI, it is a change in price unaffected by changes in the quantity or quality of labour services.

Quality adjustment

The elimination of the effect that changes in the quality have on price in order to isolate the pure price change.

Rotating panel methodology

The sample selection methodology used to refresh the sample of businesses in the WPI survey.

Sample weight

The sample weight indicates the number of jobs in the Australian labour market a particular sampled job represents.

Wage price index

Measures changes in the price of wage expenditure. The four wage price indexes include: ordinary time hourly rates of pay excluding bonuses, ordinary time hourly rates of pay including bonuses, total hourly rates of pay excluding bonuses, and total hourly rates of pay including bonuses.

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