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Effects of Changes in Family Composition and Employment Patterns on the Distribution of Income in Australia: 1981-1982 to 1997-1998

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  • David Johnson
  • Roger Wilkins

Abstract

We examine income distributions over the last two decades, presenting both non-parametric kernel density estimates and summary measures. Standard errors of summary measures are also reported to facilitate statistical inference. We find a significant increase in private income inequality, but only a modest increase in disposable income inequality, implying an increase in the inequality-reducing effects of income taxes and transfers. Using a semi-parametric procedure developed by DiNardo et al. (1996), we then examine the effects of changes in family characteristics on the distribution of private income, finding that half the increase in inequality is explained by changes in the distribution of employment. Copyright © 2004 Economic Society of Australia..

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  • David Johnson & Roger Wilkins, 2004. "Effects of Changes in Family Composition and Employment Patterns on the Distribution of Income in Australia: 1981-1982 to 1997-1998," The Economic Record, The Economic Society of Australia, vol. 80(249), pages 219-238, June.
  • Handle: RePEc:bla:ecorec:v:80:y:2004:i:249:p:219-238
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    Cited by:

    1. Onji, Kazuki, 2009. "The response of firms to eligibility thresholds: Evidence from the Japanese value-added tax," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 766-775, June.
    2. Hammill, Matthew, 2005. "Income inequality in Central America, Dominican Republic and Mexico: assessing the importance of individual and household characteristics," Estudios y Perspectivas – Sede Subregional de la CEPAL en México 43, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    3. Jenny Chesters & John Western, 2010. "Evidence and Perceptions of Inequality in Australia," CEPR Discussion Papers 635, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    4. Raymundo M. Campos-Vázquez & Andrés Hincapié & Ruben Irvin Rojas-Valdés, 2012. "Family Income Inequality and the Role of Married Females' Earnings in Mexico: 1988-2010," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 49(1), pages 67-98, May.
    5. 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.
    6. repec:bla:ecorec:v:92:y:2016:i:299:p:517-547 is not listed on IDEAS
    7. Raymundo M. Campos Vázquez & Andrés Hincapie & Rubén I. Rojas Valdés, 2011. "Family Income Inequality and the Role of Wives Earnings in Mexico: 1988-2010," Serie documentos de trabajo del Centro de Estudios Económicos 2011-07, El Colegio de México, Centro de Estudios Económicos.
    8. Ihle, Dorothee & Siebert-Meyerhoff, Andrea, 2017. "The older, the richer? A decomposition of wealth inequality by age subgroups," CAWM Discussion Papers 97, University of Münster, Center of Applied Economic Research Münster (CAWM).

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