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Disparities in Australian Regional Incomes: Are They Widening or Narrowing?

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  • Paul Cashin
  • Loris Strappazzon

Abstract

In this study we examine Australian census data on regional incomes for the period 1976–91. Following a discussion of theories and empirical evidence regarding regional income adjustment, the regional dispersion of per capita income is analysed for the six Australian states and at the sub‐state level (statistical divisions, SDs). The coefficient of variation is used as the measure of dispersion, and Gini coefficients are also calculated to analyse income equality within regions. For Australia, the cross‐state dispersion of per capita incomes increased over the period, whereas there was neither convergence nor divergence of incomes among Australia’s 57 SDs. In addition, the intrastate dispersion of per capita incomes across SDs remained largely unaltered over the period. Gini coefficients indicated that across income strata, the distribution of incomes both within states and within SDs has become more equal.

Suggested Citation

  • Paul Cashin & Loris Strappazzon, 1998. "Disparities in Australian Regional Incomes: Are They Widening or Narrowing?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 31(1), pages 3-26, March.
    • Handle: RePEc:bla:ausecr:v:31:y:1998:i:1:p:3-26
    DOI: 10.1111/1467-8462.00047
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    Cited by:

    1. Neri, Frank & Jayanthakumaran, Kankesu, 2004. "Income Disparities and Trends in Manufactured Exports Across the States and Territories of Australia: 1989/90 - 2000/01," Economics Working Papers wp04-08, School of Economics, University of Wollongong, NSW, Australia.
    2. Chyi Lin Lee, 2009. "Housing price volatility and its determinants," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 2(3), pages 293-308, August.
    3. Efthymios Tsionas, 2000. "Regional Growth and Convergence: Evidence from the United States," Regional Studies, Taylor & Francis Journals, vol. 34(3), pages 231-238.
    4. George Petrakos & Panagiotis Artelaris, 2009. "European Regional Convergence Revisited: A Weighted Least Squares Approach," Growth and Change, Wiley Blackwell, vol. 40(2), pages 314-331, June.
    5. David C Maré & Wai Kin Choy, 2001. "Regional Labour Market Adjustment and the Movements of People: A Review," Treasury Working Paper Series 01/08, New Zealand Treasury.
    6. Sharon McCaw & C John McDermott, 2000. "How New Zealand adjusts to macroeconomic shocks: implications for joining a currency area," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 63, March.

    More about this item

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O56 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Oceania

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