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Measuring Poverty and Inequality from Highly Aggregated Small Area Data: The Changing Fortunes of Latrobe Valley Households

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Author Info

  • Jill Wright

    ()

  • Ma. Rebecca Valenzuela
  • Duangkamon Chotikapanich

    ()

Abstract

The Latrobe Valley generates 85% of Victoria's electricity. The progressive privatisation of the electricity industry between 1989 and 1997, had a lasting effect on income distribution in the region. This paper investigates the change in income level, inequality and poverty for this region between 1986 and 2006. To circumvent data availability issues, we propose a general method of using aggregated data to obtain regional income distributions. We find that in 1986 Latrobe Valley incomes were well above other non-metropolitan areas while inequality measures were relatively low. Mean income subsequently dropped below comparable locations while inequality rose. Although income levels had partially recovered by 2006, inequality measures continued to rise.

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File URL: http://www.buseco.monash.edu.au/ebs/pubs/wpapers/2012/wp4-12.pdf
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Bibliographic Info

Paper provided by Monash University, Department of Econometrics and Business Statistics in its series Monash Econometrics and Business Statistics Working Papers with number 4/12.

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Length: 41 pages
Date of creation: 08 Dec 2011
Date of revision:
Handle: RePEc:msh:ebswps:2012-4

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Postal: PO Box 11E, Monash University, Victoria 3800, Australia
Phone: +61-3-9905-2489
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Web page: http://www.buseco.monash.edu.au/depts/ebs/
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Web: http://www.buseco.monash.edu.au/depts/ebs/pubs/wpapers/

Related research

Keywords: Poverty; inequality; restructure; privatization; small-area income distribution.;

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  1. George Athanasopoulos & Farshid Vahid, 2002. "Statistical Inference on Changes in Income Inequality in Australia," Monash Econometrics and Business Statistics Working Papers 9/02, Monash University, Department of Econometrics and Business Statistics.
  2. Harding, Ann & Lloyd, Rachel & Bill, Anthea & King, Anthony, 2004. "Assessing Poverty and Inequality at a Detailed Regional Level: New Advances in Spatial Microsimulation," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  3. Harding, Ann & Szukalska, Aggie, 2000. "Trends in Child Proverty in Australia, 1982 to 1995-96," The Economic Record, The Economic Society of Australia, vol. 76(234), pages 236-54, September.
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