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Modelling Potential Impact of Improved Survival of Indigenous Australians on Work-Life Labour Income Gap Between Indigenous and Average Australians

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Author Info

  • Laurie Brown

    ()
    (NATSEM, University of Canberra)

  • Binod Nepal

    ()
    (NATSEM, University of Canberra)

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    Abstract

    This study compares work-life labour income of Indigenous and average Australians and assesses potential impact of bridging mortality gaps on their work-life earning gaps using a life-table model which took account of the survival, employment and income trajectories from 25 to 64 years. Age-specific employment and average annual income data were derived from the 2006 Census for three educational groups: certificate or higher levels of education, Year 12, and less than Year 12 education. Results show that depending on educational qualifications, work-life labour income of Indigenous people is likely to be just over two-fifths to about two-thirds of work-life labour income of average Australians. If Indigenous Australians were to have the same level of survival as to average Australians, the work-life labour income gap would narrow by about four to seven percentage points. Bridging the adult mortality gap alone has only a small impact on bridging economic gaps persisting between Indigenous and other Australians.

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    Bibliographic Info

    Paper provided by University of Canberra, National Centre for Social and Economic Modelling in its series NATSEM Working Paper Series with number 11/15.

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    Length: 18 pages
    Date of creation: Sep 2011
    Date of revision:
    Publication status: Published as a NATSEM Working Paper series
    Handle: RePEc:cba:wpaper:wp1115

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    Postal: University of Canberra, ACT 2601
    Phone: +61 2 (02) 6201 2750
    Fax: +61 2 (02) 6201 2751
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    Web page: http://www.natsem.canberra.edu.au/
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    Related research

    Keywords: Indigenous; lifetime income; disadvantage; Australia;

    References

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    1. Nicholas Biddle & John Taylor, 2009. "Are the Gaps Closing? - Regional Trends and Forecasts of Indigenous Employment," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 12(3), pages 263-280.
    2. JonC. Altman & Nicholas Biddle & BoydH. Hunter, 2009. "Prospects For 'Closing The Gap' In Socioeconomic Outcomes For Indigenous Australians?," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 49(3), pages 225-251, November.
    3. P. N. Junankar, 2003. "Estimating the Social Rate of Return to Education for Indigenous Australians," Education Economics, Taylor & Francis Journals, vol. 11(2), pages 169-192.
    4. Steve Bradley & Mirko Draca & Colin Green & Gareth Leeves, 2007. "The magnitude of educational disadvantage of indigenous minority groups in Australia," Journal of Population Economics, Springer, vol. 20(3), pages 547-569, July.
    5. Booth, Alison L. & Carroll, Nick, 2008. "Economic status and the Indigenous/non-Indigenous health gap," Economics Letters, Elsevier, vol. 99(3), pages 604-606, June.
    6. Pauline Halchuck, 2006. "Measuring employment outcomes for Indigenous Australians," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 9(2), pages 201-215, June.
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