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Poverty transitions in non-remote Indigenous households: The role of labour market and household dynamics

Author

Listed:
  • Danielle Venn

    (Australian National University)

  • Boyd Hunter

    (Australian National University)

Abstract

Using data from the HILDA Survey, this paper estimates year-to-year poverty entry and exit rates for Indigenous and non-Indigenous individuals living in non-remote areas of Australia. Indigenous Australians of working age have a higher probability of entering poverty and a lower probability of exiting than non-Indigenous people, suggesting that Indigenous poverty is likely to be more persistent and have a greater negative impact on well-being. Changes in household size trigger almost half of Indigenous poverty entries and 40% of exits. Indigenous people tend to live in more dynamic households than non-Indigenous people, and also have a greater likelihood of entering poverty and a smaller likelihood of exiting after experiencing changes in household size. The labour market also plays a prominent role in triggering poverty transitions for Indigenous people, while changes in private income, such as business and investment income, play a much smaller role, largely because Indigenous people get far less of their income from such sources.

Suggested Citation

  • Danielle Venn & Boyd Hunter, 2018. "Poverty transitions in non-remote Indigenous households: The role of labour market and household dynamics," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 21(1), pages 21-44.
  • Handle: RePEc:ozl:journl:v:21:y:2018:i:1:p:21-44
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    References listed on IDEAS

    as
    1. Monica Howlett & Matthew Gray & Boyd Hunter, 2016. "Wages, Government Patterns and Other Income of Indigenous and Non-Indigenous Australians," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 19(2), pages 53-76.
    2. Boyd H. Hunter & Steven Kennedy & Nicholas Biddle, 2004. "Indigenous and Other Australian Poverty: Revisiting the Importance of Equivalence Scales," The Economic Record, The Economic Society of Australia, vol. 80(251), pages 411-422, December.
    3. Russell Ross & Peter Whiteford, 1990. "Income Poverty Among Aboriginal Families with Children: Estimates from the 1986 Census," Discussion Papers 0020, University of New South Wales, Social Policy Research Centre.
    4. Boyd Hunter, 2006. "Further Skirmishes in the Poverty War: Income Status and financial stress among Indigenous Australians," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 9(1), pages 51-64, March.
    5. Stephen P. Jenkins & Christian Schluter, 2003. "Why Are Child Poverty Rates Higher in Britain than in Germany?: A Longitudinal Perspective," Journal of Human Resources, University of Wisconsin Press, vol. 38(2).
    6. Anne Daly & Anne Hawke, 1995. "The Impact of the Welfare State on the Economic Status of Indigenous Australian Women," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 28(4), pages 29-42, October.
    7. Boyd H. Hunter & Steven Kennedy & Daniel Smith, 2003. "Household Composition, Equivalence Scales and the Reliability of Income Distributions: Some Evidence for Indigenous and Other Australians," The Economic Record, The Economic Society of Australia, vol. 79(244), pages 70-83, March.
    8. Hielke Buddelmeyer & Sher Verick, 2008. "Understanding the Drivers of Poverty Dynamics in Australian Households," The Economic Record, The Economic Society of Australia, vol. 84(266), pages 310-321, September.
    9. Mary Jo Bane & David T. Ellwood, 1983. "Slipping into and out of Poverty: The Dynamics of Spells," NBER Working Papers 1199, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Deborah A. Cobb‐Clark & Lihini De Silva, 2021. "Participation, Unemployment, and Wages," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(4), pages 482-493, December.
    2. Roger Wilkins, 2021. "Economic Wellbeing," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(4), pages 469-481, December.

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    More about this item

    Keywords

    Indigenous; poverty; employment; household dynamics;
    All these keywords.

    JEL classification:

    • D19 - Microeconomics - - Household Behavior - - - Other
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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