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The Suffering Middle: Trends in Income Inequality in Australia, 1982 to 1993–94

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  • Ann Harding

Abstract

This article analyses labour force trends, household composition and income inequality between 1982 and 1993–94, principally using unit record tapes for the two years produced by the Australian Bureau of Statistics. The results suggest that earnings and private income inequality increased during these 11 years. However, increasing progressivity in the income tax and, in particular, the government cash transfer system fully offset this growing market‐based inequality. Summary inequality measures thus suggest that the distribution of disposable (post‐tax/transfer) and equivalent disposable income was much the same in 1993–94 as in 1982. However, this apparent stability disguised real income gains at the top and bottom of the income spectrum and losses for the middle 50 per cent of Australians.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:ausecr:v:30:y:1997:i:4:p:341-358
    DOI: 10.1111/1467-8462.304034
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    Cited by:

    1. Rebecca Valenzuela & Hooi Hooi Lean, 2007. "Stochastic Dominance Analysis Of Australian Income Distributions," Monash Economics Working Papers 21-07, Monash University, Department of Economics.
    2. 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.
    3. 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.
    4. Shahateet, Mohammed, 2006. "How Serious is Regional Economic Inequality in Jordan? Evidence from Two National Household Surveys," MPRA Paper 57118, University Library of Munich, Germany.
    5. Paul Blacklow & Ranjan Ray, 2000. "A Comparison of Income and Expenditure Inequality Estimates: The Australian Evidence, 1975–76 to 1993–94," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 33(4), pages 317-329, December.
    6. Andrew Leigh, 2005. "Deriving Long‐Run Inequality Series from Tax Data," The Economic Record, The Economic Society of Australia, vol. 81(s1), pages 58-70, August.
    7. Dean Parham, 2000. "A More Productive Australian Economy," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 7(1), pages 3-16.
    8. Ann Harding & Sue Richardson, 1998. "Unemployment and Income Distribution," RBA Annual Conference Volume (Discontinued), in: Guy Debelle & Jeff Borland (ed.),Unemployment and the Australian Labour Market, Reserve Bank of Australia.
    9. Youjin Hahn & Stephen Matteo Miller & Hee-Seung Yang, 2016. "Inequality, Risk-Sharing and the Crisis: A View From Australia," Monash Economics Working Papers 15-16, Monash University, Department of Economics.
    10. Peter Saunders, 2004. "Examining Recent Changes in Income Distribution in Australia," The Economic and Labour Relations Review, , vol. 15(1), pages 51-73, June.
    11. Ann Harding & Neil Warren & Martin Robinson & Simon Lambert, 2000. "The Distributional Impact of Year 2000 Tax Reforms in Australia," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 7(1), pages 17-32.
    12. Shahateet, Mohammed & Al-Tayyeb, Saud, 2007. "Regional consumption inequalities in Jordan: Empirical study," MPRA Paper 57400, University Library of Munich, Germany.
    13. Garry F. Barrett & Thomas F. Crossley & Christopher Worswick, 2000. "Consumption and Income Inequality in Australia," The Economic Record, The Economic Society of Australia, vol. 76(233), pages 116-138, June.
    14. Kris Ivanovski & Sefa Awaworyi Churchill & John Inekwe, 2020. "Convergence in Income Inequality Across Australian States and Territories," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(1), pages 127-142, February.
    15. Ben Spies-Butcher, 2014. "Marketisation and the dual welfare state: Neoliberalism and inequality in Australia," The Economic and Labour Relations Review, , vol. 25(2), pages 185-201, June.
    16. Judith Yates, 2000. "Is Australia's Home-ownership Rate Really Stable? An Examination of Change between 1975 and 1994," Urban Studies, Urban Studies Journal Limited, vol. 37(2), pages 319-342, February.
    17. Jeff Borland, 1999. "Earnings Inequality in Australia: Changes, Causes and Consequences," The Economic Record, The Economic Society of Australia, vol. 75(2), pages 177-202, June.
    18. Nicholas Rohde & Kam Ki Tang & Prasada Rao, 2010. "Income Inequality, Mobility And Economic Insecurity In Australia," Discussion Papers Series 407, School of Economics, University of Queensland, Australia.
    19. 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.
    20. Peter Dawkins, 2000. "The Australian Labour Market in the 1990s," RBA Annual Conference Volume (Discontinued), in: David Gruen & Sona Shrestha (ed.),The Australian Economy in the 1990s, Reserve Bank of Australia.

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