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The Labour Market and Inequality

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  • Michael Keating
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    Abstract

    Newspoll reported in 2000 that by a margin of 70 to 28 per cent, Australians would prefer the gap between rich and poor to get smaller rather than have the nation's overall wealth grow as quickly as possible. This article examines the reasons for the increase in the dispersion of earnings, and changes in unemployment and workforce participation, which are central to this concern about inequality. The major finding is that the widening dispersion of earnings and changes in labour force status are principally due to changes in the structure of labour demand in favour of more skilled jobs. The article then considers what this changing job mix implies for policy directed to maintaining income inequality. Copyright 2003 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.

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    Bibliographic Info

    Article provided by The University of Melbourne, Melbourne Institute of Applied Economic and Social Research in its journal The Australian Economic Review.

    Volume (Year): 36 (2003)
    Issue (Month): 4 ()
    Pages: 374-396

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    Handle: RePEc:bla:ausecr:v:36:y:2003:i:4:p:374-396

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    Cited by:
    1. Arun, Thankom G. & Borooah, Vani, 2004. "Earnings Inequality in Sri Lanka," Development Economics and Public Policy Working Papers 30548, University of Manchester, Institute for Development Policy and Management (IDPM).
    2. Paul Gregg & Rosanna Scutella & Claudia Vittori, 2012. "Earnings Mobility and Inequality: An Integrated Framework," Melbourne Institute Working Paper Series wp2012n26, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    3. Paul Gregg & Rosanna Scutella & Claudia Vittori, 2012. "Earnings Mobility and Inequality: An Integrated Framework Abstract: In this paper we propose an integrated framework for the analysis of earnings inequality and mobility, which enables the analysis of," The Centre for Market and Public Organisation 12/295, Department of Economics, University of Bristol, UK.

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