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The Law of the Shrinking Middle: Inequality of Earnings in Australia 1975-1989

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  • King, J E
  • Rimmer, R J
  • Rimmer, S M

Abstract

International evidence shows a marked increase in the dispersion of earnings since the 1970s. In this paper the authors review some of this research. Earnings data for Australia indicate that since 1975, the distribution of earnings became significantly less equal there too. This cannot be entirely accounted for by the growth of part-time employment, cyclical influences, demographic change or greater labor market flexibility. In Australia in 1983 an "Accord" was reached between employers, unions and government. One stated aim of this incomes policy was to bring about an equitable redistribution of income, but it did not in fact reverse the trend to rising earnings inequality. On some measures the growth of inequality actually accelerated after 1983, particularly for women working full-time. Copyright 1992 by Scottish Economic Society.

Suggested Citation

  • King, J E & Rimmer, R J & Rimmer, S M, 1992. "The Law of the Shrinking Middle: Inequality of Earnings in Australia 1975-1989," Scottish Journal of Political Economy, Scottish Economic Society, vol. 39(4), pages 391-412, November.
    • Handle: RePEc:bla:scotjp:v:39:y:1992:i:4:p:391-412
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    Cited by:

    1. Robert Gregory & Francis G. Vella, 1995. "Real Wages, Employment, and Wage Dispersion in U.S. and Australian Labor Markets," NBER Chapters, in: Differences and Changes in Wage Structures, pages 205-226, National Bureau of Economic Research, Inc.
    2. Jeff Borland & Roger Wilkins, 1996. "Earnings Inequality in Australia," The Economic Record, The Economic Society of Australia, vol. 72(216), pages 7-23, March.
    3. Peter Saunders, 1993. "Longer Run Changes in the Distribution of Income in Australia," The Economic Record, The Economic Society of Australia, vol. 69(4), pages 353-366, December.
    4. Jeff Borland, 1996. "Union Effects on Earnings Dispersion in Australia, 1986–1994," British Journal of Industrial Relations, London School of Economics, vol. 34(2), pages 237-248, June.
    5. Jeff Borland, 1996. "Education and the Structure of Earnings in Australia," The Economic Record, The Economic Society of Australia, vol. 72(219), pages 370-380, December.
    6. R.G. Gregory, 1993. "Aspects of Australian and US Living Standards: The Disappointing Decades 1970–1990," The Economic Record, The Economic Society of Australia, vol. 69(1), pages 61-76, March.
    7. Jeff Borland, 1999. "Earnings Inequality in Australia: Changes, Causes and Consequences," The Economic Record, The Economic Society of Australia, vol. 75(2), pages 177-202, June.
    8. Ann Harding & Sue Richardson, 1998. "Unemployment and Income Distribution," RBA Annual Conference Volume (Discontinued), in: Guy Debelle & Jeff Borland (ed.),Unemployment and the Australian Labour Market, Reserve Bank of Australia.

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