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The trend of welfare disparity among subgroups of population in Australia 1983-1984 - 1993-1994

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  • Pundarik Mukhopadhaya

Abstract

The aim of this paper is to estimate the trend of social welfare for Australia using 1983-1984, 1988-1989 and 1993-1994 Household Expenditure Survey data. The functional form of the Social Welfare Function (SWF) was derived by Sen, Degum, Yitzhaki and Shesinski (all independently). Since the function contains the Gini coefficient as the inequality parameter, it could not be formally disaggregated by subgroups of population. This paper, using a method of subgroup decomposition of the Gini coefficient developed by Podder, attempts to disaggregate the SWF. With this method it is now possible to identify disadvantaged groups by their relative shares in total welfare. In addition the method is used to determine effect of economic growth on specific subgroups, and in turn, on total social welfare. This study is based on the Australian economy. Distribution of relative shares of total social welfare among various regional groups are identified, groups determined by occupational status and groups determined by country of birth. The effect on society's welfare for a percentage change in income of a group and the trend of relative welfare of a specific group are also computed. This information can be used in a variety of social decision making situations, including cost benefit analysis.

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  • Pundarik Mukhopadhaya, 2002. "The trend of welfare disparity among subgroups of population in Australia 1983-1984 - 1993-1994," Applied Economics, Taylor & Francis Journals, vol. 34(14), pages 1733-1741.
    • Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1733-1741
    DOI: 10.1080/00036840210124171
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    Cited by:

    1. El-Osta, Hisham S. & Morehart, Mitchell J., 2009. "Welfare Decomposition in the Context of the Life Cycle of Farm Operators: What Does a National Survey Reveal?," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(2), pages 1-17, October.
    2. Hisham S. El-Osta, 2020. "Life-Cycle and Its Impact on the Disparity in Economic Well-Being among U.S. Sole Proprietor Households: Evidence from Two National Surveys," Applied Economics and Finance, Redfame publishing, vol. 7(1), pages 1-14, January.
    3. Mark Wiykiynyuy Tangwa & Francis Menjo Baye & Boniface Ngah Epo, 2017. "Identification and Social Welfare Decomposition of Human Capital Sources of Well-being in Cameroon," African Development Review, African Development Bank, vol. 29(3), pages 458-470, September.

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