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Measuring Poverty and Inequality from Highly Aggregated Small Area Data: The Changing Fortunes of Latrobe Valley Households

Author

Listed:
  • Jill Wright
  • Ma. Rebecca Valenzuela
  • Duangkamon Chotikapanich

Abstract

Using census data, we analyse inequality and poverty levels for the coal-rich region of Latrobe Valley between 1986 and 2006, a period incorporating industry restructuring, recession and subsequent growth. To enable the analysis using limited information, we propose a method for using grouped data to obtain income distributions for small areas. Unit record data are used to validate the methodology. We find that welfare in the Valley deteriorated between 1986 and 1996, in line with national and regional trends. However, between 1996 and 2006, when the economy grew strongly and many regions started to prosper again, welfare in the Valley continued to deteriorate.

Suggested Citation

  • Jill Wright & Ma. Rebecca Valenzuela & Duangkamon Chotikapanich, 2015. "Measuring Poverty and Inequality from Highly Aggregated Small Area Data: The Changing Fortunes of Latrobe Valley Households," Monash Economics Working Papers 19-15, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2015-19
    as

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    References listed on IDEAS

    as
    1. Ann Harding & Aggie Szukalska, 2000. "Trends in Child Poverty in Australia, 1982 to 1995–96," The Economic Record, The Economic Society of Australia, vol. 76(234), pages 236-254, September.
    2. Philippe Belley & Lance Lochner, 2007. "The Changing Role of Family Income and Ability in Determining Educational Achievement," Journal of Human Capital, University of Chicago Press, vol. 1(1), pages 37-89.
    3. George Athanasopoulos & Farshid Vahid, 2003. "Statistical Inference and Changes in Income Inequality in Australia," The Economic Record, The Economic Society of Australia, vol. 79(247), pages 412-424, December.
    4. Bernard Trendle, 2005. "Sources Of Regional Income Inequality: An Examination Of Small Regions In Queensland," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 17(1), pages 35-50, March.
    5. Ann Harding & Rachel Lloyd & Anthea Bill & Anthony King, 2004. "Assessing Poverty and Inequality at a Detailed Regional Level: New Advances in Spatial Microsimulation," WIDER Working Paper Series RP2004-26, World Institute for Development Economic Research (UNU-WIDER).
    6. repec:bla:ecorec:v:76:y:2000:i:234:p:236-54 is not listed on IDEAS
    7. Simhauser, Paul, 2005. "The Gains from the Microeconomic Reform of the Power Generation Industry in East-Coast Australia," Economic Analysis and Policy, Elsevier, vol. 35(1-2), pages 23-43, March/Sep.
    8. Philip Maxwell & Matthew Peter, 1988. "Income Inequality in Small Regions: A Study of Australian Statistical Divisions," The Review of Regional Studies, Southern Regional Science Association, vol. 18(1), pages 19-27, Winter.
    9. Tony Eardley, 2000. "Working but Poor? Low Pay and Poverty in Australia," The Economic and Labour Relations Review, , vol. 11(2), pages 308-338, December.
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    More about this item

    Keywords

    Poverty; inequality; restructure; privatization; small-area income distribution;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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