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Statistical Inference and Changes in Income Inequality in Australia


  • George Athanasopoulos
  • Farshid Vahid


This paper studies the changes in income inequality in Australia between 1986 and 1999, using the Gini coefficient and Theil's inequality measure. Individuals are divided into various subgroups along several dimensions, namely region of residence, employment status, occupation and age. The change in inequality over time, between and within these subgroups is studied, and the bootstrap method is used to establish whether these changes are statistically significant. Copyright 2003. The Economic Society of Australia.

Suggested Citation

  • George Athanasopoulos & Farshid Vahid, 2003. "Statistical Inference and Changes in Income Inequality in Australia," The Economic Record, The Economic Society of Australia, vol. 79(247), pages 412-424, December.
  • Handle: RePEc:bla:ecorec:v:79:y:2003:i:247:p:412-424

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    References listed on IDEAS

    1. Borland, Jeff, 1999. "Earnings Inequality in Australia: Changes, Causes and Consequences," The Economic Record, The Economic Society of Australia, vol. 75(229), pages 177-202, June.
    2. Peter Gottschalk, 1997. "Inequality, Income Growth, and Mobility: The Basic Facts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 21-40, Spring.
    3. Mills, Jeffrey A & Zandvakili, Sourushe, 1997. "Statistical Inference via Bootstrapping for Measures of Inequality," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(2), pages 133-150, March-Apr.
    4. Biewen, Martin, 2002. "Bootstrap inference for inequality, mobility and poverty measurement," Journal of Econometrics, Elsevier, vol. 108(2), pages 317-342, June.
    5. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Equivalence Scale Relativities and the Extent of Inequality and Poverty," Economic Journal, Royal Economic Society, vol. 102(414), pages 1067-1082, September.
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    Cited by:

    1. Jill Wright & Ma. Rebecca Valenzuela & Duangkamon Chotikapanich, 2011. "Measuring Poverty and Inequality from Highly Aggregated Small Area Data: The Changing Fortunes of Latrobe Valley Households," Monash Econometrics and Business Statistics Working Papers 4/12, Monash University, Department of Econometrics and Business Statistics.
    2. Paul Gregg & Rosanna Scutella & Claudia Vittori, 2012. "Earnings Mobility and Inequality: An Integrated Framework," Melbourne Institute Working Paper Series wp2012n26, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    3. Schröder, Carsten & Bönke, Timm, 2012. "Country inequality rankings and conversion schemes," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 6, pages 1-43.
    4. Bönke Timm & Schröder Carsten, 2011. "Poverty in Germany – Statistical Inference and Decomposition," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 231(2), pages 178-209, April.
    5. Stéphane Mussard & Pi Alperin María Noel, 2006. "Measuring Significance of Inequalities with Heterogeneous Groups and Income Sources," Cahiers de recherche 06-13, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    6. Roger Wilkins, 2014. "Evaluating the Evidence on Income Inequality in Australia in the 2000s," The Economic Record, The Economic Society of Australia, vol. 90(288), pages 63-89, March.
    7. Carsten Schröder, 2011. "Cowell, F.: Measuring Inequality. London School of Economics Perspectives in Economic Analysis," Journal of Economics, Springer, vol. 104(3), pages 281-285, November.
    8. Hooi Hooi Lean & Ma. Rebecca Valenzuela, 2012. "Inequality in Australia 1983-2004: A Stochastic Dominance Approach," Monash Economics Working Papers 06-12, Monash University, Department of Economics.
    9. D'Amico, Guglielmo & Di Biase, Giuseppe & Manca, Raimondo, 2012. "Income inequality dynamic measurement of Markov models: Application to some European countries," Economic Modelling, Elsevier, vol. 29(5), pages 1598-1602.
    10. repec:bla:ecorec:v:92:y:2016:i:299:p:517-547 is not listed on IDEAS
    11. Mukhopadhyay, Jyoti Prasad, 2014. "Does access to microfinance affect consumption inequality? :evidence from a randomized controlled trial in Andhra Pradesh, India," MPRA Paper 58674, University Library of Munich, Germany.
    12. Timm Bönke & Carsten Schröder & Katharina Schulte, 2010. "Incomes and Inequality in the Long Run: The Case of German Elderly," German Economic Review, Verein für Socialpolitik, vol. 11, pages 487-510, November.
    13. Rubiana Chamarbagwala, 2010. "Economic liberalization and urban–rural inequality in India: a quantile regression analysis," Empirical Economics, Springer, vol. 39(2), pages 371-394, October.
    14. Timm Bönke & Carsten Schröder & Katharina Schulte, 2011. "Zur Entwicklung der Einkommensverteilung unter älteren Menschen in Deutschland seit der Wiedervereinigung," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 80(2), pages 81-99.
    15. Francisco Azpitarte & Olga Alonso-Villar, 2012. "A Dominance Criterion for Measuring Income Inequality from a Centrist View: The Case of Australia," Melbourne Institute Working Paper Series wp2012n03, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Other


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