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Effects of Changes in Family Composition and Employment Patterns on the Distribution of Income in Australia: 1981-1982 to 1997-1998

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  • David Johnson
  • Roger Wilkins

Abstract

We examine income distributions over the last two decades, presenting both non-parametric kernel density estimates and summary measures. Standard errors of summary measures are also reported to facilitate statistical inference. We find a significant increase in private income inequality, but only a modest increase in disposable income inequality, implying an increase in the inequality-reducing effects of income taxes and transfers. Using a semi-parametric procedure developed by DiNardo et al. (1996), we then examine the effects of changes in family characteristics on the distribution of private income, finding that half the increase in inequality is explained by changes in the distribution of employment. Copyright � 2004 Economic Society of Australia..

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Bibliographic Info

Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 80 (2004)
Issue (Month): 249 (06)
Pages: 219-238

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Handle: RePEc:bla:ecorec:v:80:y:2004:i:249:p:219-238

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Cited by:
  1. Kazuki Onji, 2008. "The Response of Firms to Eligibility Thresholds : Evidence from the Japanese Value-Added Tax," Finance Working Papers 21965, East Asian Bureau of Economic Research.
  2. Raymundo M. Campos-Vázquez & Andrés Hincapié & Ruben Irvin Rojas-Valdés, 2012. "Family Income Inequality and the Role of Married Females' Earnings in Mexico: 1988-2010," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 49(1), pages 67-98, May.
  3. 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.
  4. Raymundo M. Campos Vázquez & Andrés Hincapie & Rubén I. Rojas Valdés, 2011. "Family Income Inequality and the Role of Wives Earnings in Mexico: 1988-2010," Serie documentos de trabajo del Centro de Estudios Económicos 2011-07, El Colegio de México, Centro de Estudios Económicos.
  5. Hooi Hooi Lean & Ma. Rebecca Valenzuela, 2012. "Inequality in Australia 1983-2004: A Stochastic Dominance Approach," Development Research Unit Working Paper Series 06-12, Monash University, Department of Economics.

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