IDEAS home Printed from https://ideas.repec.org/a/tsy/journl/journl_tsy_er_2013_2_3.html
   My bibliography  Save this article

Income Inequality in Australia

Author

Listed:
  • Michael Fletcher

    (Treasury, Government of Australia)

  • Ben Guttermann

    (Treasury, Government of Australia)

Abstract

Australia has experienced a sustained period of solid real income growth, along with a modest increase in income inequality. Incomes in lower deciles were strongly supported by growth in labour participation, while those in the upper deciles were supported by growth in returns on capital investment. This paper contends that the income inequality debate may need to be refocused on those at the very bottom of the income distribution and away from those at the very top.

Suggested Citation

  • Michael Fletcher & Ben Guttermann, 2013. "Income Inequality in Australia," Economic Roundup, The Treasury, Australian Government, issue 2, pages 35-56, December.
  • Handle: RePEc:tsy:journl:journl_tsy_er_2013_2_3
    as

    Download full text from publisher

    File URL: http://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2013/Economic%20Roundup%20Issue%202/Downloads/PDF/3-Income-Inequality-Paper.ashx
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Anthony B. Atkinson & Andrew Leigh, 2007. "The Distribution of Top Incomes in Australia," The Economic Record, The Economic Society of Australia, vol. 83(262), pages 247-261, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Greg Kaplan & Gianni La Cava & Tahlee Stone, 2018. "Household Economic Inequality in Australia," The Economic Record, The Economic Society of Australia, vol. 94(305), pages 117-134, June.
    2. Nicholas Marinucci & Kris Ivanovski, 2023. "Does Inequality Affect Climate Change? A Regional and Sectoral Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 166(3), pages 705-729, April.
    3. Yongfen Shi & Sudeshna Paul & Sudharshan Reddy Paramati, 2022. "The impact of financial deepening on income inequality: Empirical evidence from Australia," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 3564-3579, July.
    4. Arturo Martinez Jr. & Tina Rampino & Mark Western & Wojtek Tomaszewski & Jude David Roque, 2017. "Estimating the Contribution of Circumstances that Reflect Inequality of Opportunities," Economic Papers, The Economic Society of Australia, vol. 36(4), pages 380-400, December.
    5. Tran Thi Kim Oanh & Nguyen Thi Hong Ha, 2023. "Impact of income inequality on climate change in Asia: the role of human capital," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-11, December.
    6. Jeffrey C. Standen & Geoffrey G. Morgan & Tim Sowerbutts & Katrina Blazek & Jessica Gugusheff & Otto Puntsag & Michael Wollan & Paul Torzillo, 2020. "Prioritising Housing Maintenance to Improve Health in Indigenous Communities in NSW over 20 years," IJERPH, MDPI, vol. 17(16), pages 1-22, August.
    7. Peter Saunders & Bruce Bradbury & Melissa Wong, 2016. "The Growing Gap Between Rich and Poor in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 19(1), pages 15-32.
    8. Mark Westcott & John Murray, 2017. "Financialisation and inequality in Australia," The Economic and Labour Relations Review, , vol. 28(4), pages 519-537, December.
    9. Mai Duong & Rebekah J Moles & Betty Chaar & Timothy F Chen & World Hospital Pharmacy Research Consortium (WHoPReC), 2015. "Essential Medicines in a High Income Country: Essential to Whom?," PLOS ONE, Public Library of Science, vol. 10(12), pages 1-14, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nicolas Hérault & Dean Hyslop & Stephen P. Jenkins & Roger Wilkins, 2024. "Rising top‐income persistence in Australia: Evidence from income tax data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 70(1), pages 154-186, March.
    2. Dirk Antonczyk & Thomas DeLeire & Bernd Fitzenberger, 2018. "Polarization and Rising Wage Inequality: Comparing the U.S. and Germany," Econometrics, MDPI, vol. 6(2), pages 1-33, April.
    3. Anthony B. Atkinson & Thomas Piketty & Emmanuel Saez, 2011. "Top Incomes in the Long Run of History," Journal of Economic Literature, American Economic Association, vol. 49(1), pages 3-71, March.
    4. Mike Pottenger & Andrew Leigh, 2016. "Long-Run Trends in Australian Executive Remuneration: BHP, 1887–2012," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 56(1), pages 2-20, March.
    5. Nicolas Herault & Francisco Azpitarte, 2014. "Recent Trends in Income Redistribution in Australia: Can Changes in the Tax-Transfer System Account for the Decline in Redistribution?," Melbourne Institute Working Paper Series wp2014n02, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    6. Richard Burkhauser & Shuaizhang Feng & Stephen Jenkins & Jeff Larrimore, 2011. "Estimating trends in US income inequality using the Current Population Survey: the importance of controlling for censoring," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(3), pages 393-415, September.
    7. Roine, Jesper & Vlachos, Jonas & Waldenström, Daniel, 2007. "What Determines Top Income Shares? Evidence from the Twentieth Century," SSE/EFI Working Paper Series in Economics and Finance 676, Stockholm School of Economics.
    8. Sambit Bhattacharyya & Jeffrey Williamson, 2013. "Distributional Impact of Commodity Price Shocks: Australia over a Century," CEH Discussion Papers 019, Centre for Economic History, Research School of Economics, Australian National University.
    9. Anthony B. Atkinson & Alessandra Casarico & Sarah Voitchovsky, 2018. "Top incomes and the gender divide," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 16(2), pages 225-256, June.
    10. Facundo Alvaredo, 2007. "The Rich in Argentina over the twentieth century: From the Conservative Republic to the Peronist experience and beyond 1932-2004," Working Papers halshs-00588318, HAL.
    11. Silvia Mendolia & Peter Siminski, 2016. "New Estimates of Intergenerational Mobility in Australia," The Economic Record, The Economic Society of Australia, vol. 92(298), pages 361-373, September.
    12. Pamela Katic & Andrew Leigh, 2016. "Top Wealth Shares in Australia 1915–2012," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(2), pages 209-222, June.
    13. Emmanuel Saez & Joel Slemrod & Seth H. Giertz, 2012. "The Elasticity of Taxable Income with Respect to Marginal Tax Rates: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 50(1), pages 3-50, March.
    14. Richard Burkhauser & Shuaizhang Feng & Stephen Jenkins & Jeff Larrimore, 2009. "Recent Trends in Top Income Shares in the USA: Reconciling Estimates from March CPS and IRS Tax Return Data," Working Papers 09-26, Center for Economic Studies, U.S. Census Bureau.
    15. Atkinson, Anthony B & Alvaredo, Facundo, 2010. "Colonial Rule, Apartheid and Natural Resources: Top Incomes in South Africa, 1903-2007," CEPR Discussion Papers 8155, C.E.P.R. Discussion Papers.
    16. Salvatore Morelli & Timothy Smeeding & Jeffrey Thompson, 2014. "Post-1970 Trends in Within-Country Inequality and Poverty: Rich and Middle Income Countries," CSEF Working Papers 356, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    17. Christoph A. Schaltegger & Christoph Gorgas, 2011. "The Evolution of Top Incomes in Switzerland over the 20th Century," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 147(IV), pages 479-519, December.
    18. Timothy Neal, 2013. "Using Panel Co-Integration Methods To Understand Rising Top Income Shares," The Economic Record, The Economic Society of Australia, vol. 89(284), pages 83-98, March.
    19. Rolf Aaberge & Anthony B. Atkinson, 2008. "Top Incomes in Norway," Discussion Papers 552, Statistics Norway, Research Department.
    20. Jenny Chesters & John Western, 2010. "Evidence and Perceptions of Inequality in Australia," CEPR Discussion Papers 635, Centre for Economic Policy Research, Research School of Economics, Australian National University.

    More about this item

    Keywords

    Income; Inequality; Gini coefficient; Gini; Distribution; Transfers; Welfare Policy;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tsy:journl:journl_tsy_er_2013_2_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: The Treasury (Commonwealth of Australia) (email available below). General contact details of provider: https://edirc.repec.org/data/trgovau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.