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Male Earnings Inequality, Women's Earnings, and Family Income Inequality in Australia, 1982-2007

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  • Siobhan Austen
  • Gerry Redmond

Abstract

In the quarter century after 1982, male earnings inequality increased substantially in most industrialized countries, as did women's participation in paid work. Both trends impacted family income inequality. However, this paper's analysis of Australian data shows that the impact of women's earnings on family income inequality changed over the study period of 1982 to 1995-1996. During the same time frame, the growth in women's earnings was concentrated in households with high male earnings, pushing family income inequality higher. However, after 1995-1996, the growth in women's earnings had a moderating influence on family income inequality as it was concentrated in households with lower male earnings. These findings contribute new evidence on the importance of trends in family formation and the correlation of husbands' and wives' earnings to the evolution of family income inequality. The evidence is also suggestive of a dynamic relationship between rising family income inequality and women's participation in paid work that echoes Thorstein Veblen's ([1899] 2008) ideas regarding the importance of relative income and emulation.

Suggested Citation

  • Siobhan Austen & Gerry Redmond, 2013. "Male Earnings Inequality, Women's Earnings, and Family Income Inequality in Australia, 1982-2007," Journal of Economic Issues, Taylor & Francis Journals, vol. 47(1), pages 33-62.
    • Handle: RePEc:mes:jeciss:v:47:y:2013:i:1:p:33-62
    DOI: 10.2753/JEI0021-3624470102
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    Cited by:

    1. Gerry Redmond & Peter Whiteford, 2011. "Middle class welfare in Australia: How has the distribution of cash benefits changed since the 1980s?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 14(2), pages 81-102.
    2. Diederik Boertien & Milan Bouchet-Valat, 2020. "Are Increasing Earnings Associations Between Partners of Concern for Inequality? A Comparative Study of 21 Countries," LIS Working papers 793, LIS Cross-National Data Center in Luxembourg.

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