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The Labour Market and Inequality

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  • Michael Keating

Abstract

Newspoll reported in 2000 that by a margin of 70 to 28 per cent, Australians would prefer the gap between rich and poor to get smaller rather than have the nation's overall wealth grow as quickly as possible. This article examines the reasons for the increase in the dispersion of earnings, and changes in unemployment and workforce participation, which are central to this concern about inequality. The major finding is that the widening dispersion of earnings and changes in labour force status are principally due to changes in the structure of labour demand in favour of more skilled jobs. The article then considers what this changing job mix implies for policy directed to maintaining income inequality.

Suggested Citation

  • Michael Keating, 2003. "The Labour Market and Inequality," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 36(4), pages 374-396, December.
    • Handle: RePEc:bla:ausecr:v:36:y:2003:i:4:p:374-396
    DOI: 10.1111/j.1467-8462.2003.00296.x
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    References listed on IDEAS

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    1. Ann Harding, 1997. "The Suffering Middle: Trends in Income Inequality in Australia, 1982 to 1993–94," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 30(4), pages 341-358, December.
    2. Paula Barnes & Sharon Kennard, 2002. "Skill and Australia's productivity surge," Labor and Demography 0210001, University Library of Munich, Germany.
    3. Michael Keating, 2003. "Earnings and Inequality," CEPR Discussion Papers 460, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    4. Keating, M., 1998. "The Role of Government in Work and Welfare," CEPR Discussion Papers 381, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    5. 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.
    6. Gregory, R.G. & Hunter, B., 1995. "The Macro Economy and the Growth of Ghettos and Urban Poverty in Australia," CEPR Discussion Papers 325, Centre for Economic Policy Research, Research School of Economics, Australian National University.
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    Cited by:

    1. Ben Dolman, 2009. "What Happened to Australia's Productivity Surge?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 42(3), pages 243-263.
    2. Paul Gregg & Rosanna Scutella & Claudia Vittori, 2012. "Earnings Mobility and Inequality: An Integrated Framework," Melbourne Institute Working Paper Series wp2012n26, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    3. Thankom Arun & Vani Borooah & Shoba Arun, 2013. "Earnings inequality in sri lanka," Journal of Developing Areas, Tennessee State University, College of Business, vol. 47(1), pages 355-371, January-J.
    4. Stephen Bell & Michael Keating, 2019. "Low Wage Growth: Why It Matters and How to Fix It," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 52(4), pages 377-392, December.
    5. Jeff Borland & Michael Coelli, 2016. "Labour Market Inequality in Australia," The Economic Record, The Economic Society of Australia, vol. 92(299), pages 517-547, December.
    6. Michael Coelli & Jeff Borland, 2016. "Job Polarisation and Earnings Inequality in Australia," The Economic Record, The Economic Society of Australia, vol. 92(296), pages 1-27, March.

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