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Consumption and Income Inequality in Australia

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Author Info
Barrett, Garry F
Crossley, Thomas F
Worswick, Christopher

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Abstract

Consumption may be a more appropriate measure of household well-being than income or earnings. Using four ABS Household Expenditures Surveys collected between 1975 and 1993, we compare trends in consumption and income inequality among Australian households. We find that consumption is much more equal than income. While there were significant increases in both income and consumption inequality, consumption inequality rose by much less. One interpretation of the results is that some income inequality in Australia reflects transitory fluctuations which households can smooth, and that part of the growth in income inequality reflects an increase in these transitory fluctuations. Copyright 2000 by The Economic Society of Australia.

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Publisher Info
Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 76 (2000)
Issue (Month): 233 (June)
Pages: 116-38
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Handle: RePEc:bla:ecorec:v:76:y:2000:i:233:p:116-38

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  1. Rebecca Valenzuela & Hooi Hooi Lean, 2007. "Stochastic Dominance Analysis Of Australian Income Distributions," Monash Economics Working Papers 21/07, Monash University, Department of Economics. [Downloadable!]
  2. Jeremy Lise & Shannon Seitz, 2004. "Consumption Inequality and Intra-Household Allocations," Working Papers 1019, Queen's University, Department of Economics. [Downloadable!]
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  3. Meng, Xin & Gregory, Robert & Wang, Youjuan, 2005. "Poverty, Inequality, and Growth in Urban China, 1986-2000," IZA Discussion Papers 1452, Institute for the Study of Labor (IZA). [Downloadable!]
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  4. Bruce Chapman & Chris Ryan, 2003. "The Access Implications of Income Contingent Charges for Higher Education: Lessons from Australia," CEPR Discussion Papers 463, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
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  5. Judith A. Clarke & Nilanjana Roy, 2009. "On Statistical Inference for Inequality Measures Calculated from Complex Survey Data," Econometrics Working Papers 0904, Department of Economics, University of Victoria. [Downloadable!]
  6. Ramani Gunatilaka & Duangkamon Chotikapanich, 2006. "Inequality Trends and Determinants in Sri Lanka 1980-2002: A Shapley Approach to Decomposition," Monash Econometrics and Business Statistics Working Papers 6/06, Monash University, Department of Econometrics and Business Statistics. [Downloadable!]
  7. David Johnson & Roger Wilkins, 2003. "The Effects of Changes in Family Composition and Employment Patterns on the Distribution of Income in Australia: 1982 to 1997-1998," Melbourne Institute Working Paper Series wp2003n19, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
  8. Rolf Aaberge and Magne Mogstad, 2007. "On the Definition and Measurement of Chronic Poverty," Discussion Papers 497, Research Department of Statistics Norway. [Downloadable!]
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  9. Thomas F. Crossley & Krishna Pendakur, 2002. "Consumption Inequality," Department of Economics Working Papers 2002-09, McMaster University. [Downloadable!]
  10. Ramani Gunatilaka & Duangkamon Chotikapanich & Brett Inder, 2006. "Impact of Structural Change in Education, Industry and Infrastructure on Income Distribution in Sri Lanka," Monash Econometrics and Business Statistics Working Papers 21/06, Monash University, Department of Econometrics and Business Statistics. [Downloadable!]
  11. Cathal Clancy & David Madden, 2005. "Growth and Inequality in Ireland, 1987 - 1999," Working Papers 200516, School Of Economics, University College Dublin. [Downloadable!]
  12. Headey, Bruce & Muffels, Ruud & Wooden, Mark, 2004. "Money Doesn’t Buy Happiness - Or Does It? A Reconsideration Based on the Combined Effects of Wealth, Income and Consumption," IZA Discussion Papers 1218, Institute for the Study of Labor (IZA). [Downloadable!]
  13. Bruce Headey & Ruud Muffels & Mark Wooden, 2004. "Money Doesn't Buy Happiness … or Does It? A Reconsideration Based on the Combined Effects of Wealth, Income and Consumption," Melbourne Institute Working Paper Series wp2004n15, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
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