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The Living Standards of the Low Income Self‐Employed

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  • Bruce Bradbury

Abstract

Poverty and inequality measurement in Australia has typically excluded the self‐employed because of concerns about a weak relationship between their measured incomes and their standard of living. At the same time, however, families containing self‐employed individuals receive substantial income support. Is this support well targeted? This paper compares the living standards of low income self‐employed and employee families using data from the ABS 1993–94 Household Expenditure Survey. The use of expenditure data for the measurement of living standards poses particular methodological problems, for which some new solutions are proposed. The paper concludes that the average living standards of low income self‐employed families and of self‐employed families receiving additional family payments are higher than those of comparable employee families. On the other hand, a greater proportion of self‐employed families have low consumption levels.

Suggested Citation

  • Bruce Bradbury, 1997. "The Living Standards of the Low Income Self‐Employed," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 30(4), pages 374-389, December.
    • Handle: RePEc:bla:ausecr:v:30:y:1997:i:4:p:374-389
    DOI: 10.1111/1467-8462.304036
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    Cited by:

    1. Bjørkheim, Julie Brun & Nygård, Odd E., 2024. "Gender Differences in Tax Evasion: Evidence from Norwegian Administrative Data," Discussion Papers 2024/8, Norwegian School of Economics, Department of Business and Management Science.
    2. Raquel Fonseca & Simon Lord & Simon C. Parker, 2020. "Self-Employment at Older Ages in Canada," Cahiers de recherche / Working Papers 2003, Chaire de recherche sur les enjeux économiques intergénérationnels / Research Chair in Intergenerational Economics.
    3. Hashimzade, Nigar & Myles, Gareth D. & Rablen, Matthew D., 2016. "Predictive analytics and the targeting of audits," Journal of Economic Behavior & Organization, Elsevier, vol. 124(C), pages 130-145.
    4. Horemans, Jeroen & Marx, Ive, 2017. "Poverty and Material Deprivation among the Self-Employed in Europe: An Exploration of a Relatively Uncharted Landscape," IZA Discussion Papers 11007, Institute of Labor Economics (IZA).

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