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Mining activity, income inequality and gender in regional Australia

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  • Reeson, Andrew
  • Measham, Thomas G.
  • Hosking, Karin

Abstract

Mining activity has been a significant driver of export growth as well as income and employment in parts of regional Australia. However, while income growth is an economic benefit, the high incomes associated with the mining sector may also lead to greater inequality. This paper describes an empirical analysis of mining activity and income inequality in regional Australia. The Gini coefficient (a measure of inequality) for personal income is found to be significantly associated with levels of mining employment. However, this relationship is not linear. Rather, income inequality initially increases with mining activity, before decreasing at medium to high levels of mining employment, following a Kuznets curve pattern. Segregating data for men and women reveals very different patterns. Among men, inequality initially increases as mining employment in a region increases, but then sharply decreases; at high levels of mining activity, income inequality among men is lower than is typically observed in non-mining areas. Among women, income inequality increases with mining activity throughout its range. This suggests that income inequality is most likely to be a problem in locales with intermediate levels of mining activity and that it affects men and women quite differently.

Suggested Citation

  • Reeson, Andrew & Measham, Thomas G. & Hosking, Karin, 2012. "Mining activity, income inequality and gender in regional Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(2), pages 1-12.
    • Handle: RePEc:ags:aareaj:208896
    DOI: 10.22004/ag.econ.208896
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    5. Qi Wen & Jin Li & Kevin M. Mwenda & Daniel Ervin & Maya Chatterjee & David Lopez‐Carr, 2022. "Coal exploitation and income inequality: Testing the resource curse with econometric analyses of household survey data from northwestern China," Growth and Change, Wiley Blackwell, vol. 53(1), pages 452-469, March.
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    7. Measham, Thomas & Fleming, David & Schandl, Heinz, 2015. "A Conceptual Model of the Socioeconomic Impacts of Unconventional Fossil Fuel Extraction," MPRA Paper 68523, University Library of Munich, Germany, revised 24 Nov 2015.
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    9. Fleming, David A. & Measham, Thomas G., 2015. "Local economic impacts of an unconventional energy boom: the coal seam gas industry in Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(1), January.
    10. Kotey, Bernice & Rolfe, John, 2014. "Demographic and economic impact of mining on remote communities in Australia," Resources Policy, Elsevier, vol. 42(C), pages 65-72.
    11. Windle, Jill & Rolfe, John, 2014. "Valuation framing and attribute scope variation in a choice experiment to asses the impacts of changing land use from agriculture to mining," 2014 Conference (58th), February 4-7, 2014, Port Macquarie, Australia 165888, Australian Agricultural and Resource Economics Society.
    12. Fleming, David A. & Measham, Thomas G., 2013. "Disentangling the Natural Resources Curse: National and Regional Socioeconomic Impacts of Resource Windfalls," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150526, Agricultural and Applied Economics Association.
    13. BERUMEN, Sergio A. & LLAMAZARES-REDONDO, Francisco, 2014. "Economic Development and Viability Firms in European Mining Regions," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 14(1), pages 33-46.
    14. West, James & Schandl, Heinz, 2013. "Material use and material efficiency in Latin America and the Caribbean," Ecological Economics, Elsevier, vol. 94(C), pages 19-27.
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    17. Rodríguez-Puello, Gabriel & Rickardsson, Jonna, 2024. "Spatial Diffusion of Economic Shocks in the Labor Market: Evidence from a Mining Boom and Bust," OSF Preprints tzmf2, Center for Open Science.
    18. Miller, Rebecca, 2015. "Natural resource extraction and political trust," Resources Policy, Elsevier, vol. 45(C), pages 165-172.
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    23. De Valck, Jeremy & Williams, Galina & Kuik, Swee, 2021. "Does coal mining benefit local communities in the long run? A sustainability perspective on regional Queensland, Australia," Resources Policy, Elsevier, vol. 71(C).

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