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Wages, Government Patterns and Other Income of Indigenous and Non-Indigenous Australians

Author

Listed:
  • Monica Howlett

    (University of California Berkeley)

  • Matthew Gray

    (University of California Berkeley)

  • Boyd Hunter

    (The Australian National University)

Abstract

This paper compares the level and source of income for Indigenous and non-Indigenous Australians using data from the 2011 wave of the Household Income and Labour Dynamics in Australia (HILDA). Three sources of income are considered: wages and salaries; government benefits; and income from businesses, investments and other private transfers. Consistent with many previous studies, Indigenous Australians have, on average, lower total income than non-Indigenous Australians, with this difference being largest for those who are full-time employed. The difference is also larger for males compared to females. In terms of non-wage income, Indigenous men and women receive a much smaller proportion of income from other sources than their non-Indigenous counterparts (primarily business and investment income). This is particularly the case for those who are not in the labour force (NILF). Correspondingly, government benefits constitute a higher proportion of income for the Indigenous population than for the non-Indigenous. This is true for both males and females, and for all labour force states, although the difference is largest for part-time employed and those who are NILF. Given Indigenous persons are also more likely to be unemployed than non-Indigenous persons, they are more likely to be dependent solely on government payments as a source of income at any one time. The implications of these findings are discussed, as well as directions for future research.

Suggested Citation

  • Monica Howlett & Matthew Gray & Boyd Hunter, 2016. "Wages, Government Patterns and Other Income of Indigenous and Non-Indigenous Australians," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 19(2), pages 53-76.
  • Handle: RePEc:ozl:journl:v:19:y:2016:i:2:p:53-76
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    References listed on IDEAS

    as
    1. Anne Daly & Boyd Hunter, 1999. "Incentives to Work: Replacement Ratios and the Cost of Job Loss among Indigenous Australians," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 32(3), pages 219-236, September.
    2. Wei-Yin Hu, 1999. "Child Support, Welfare Dependency, and Women's Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 34(1), pages 71-103.
    3. Nicholas Biddle & Monica Howlett & Boyd Hunter & Yin Paradies, 2013. "Labour market and other discrimination facing Indigenous Australians," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 16(1), pages 91-113.
    4. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    5. AfDB AfDB, . "Annual Report 2012," Annual Report, African Development Bank, number 461.
    6. Laurie Brown & Binod Nepal, 2011. "Modelling Potential Impact of Improved Survival of Indigenous Australians on Work-Life Labour Income Gap Between Indigenous and Average Australians," NATSEM Working Paper Series 11/15, University of Canberra, National Centre for Social and Economic Modelling.
    7. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    8. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    9. Denise J. Doiron, 2004. "Welfare Reform and the Labour Supply of Lone Parents in Australia: A Natural Experiment Approach," The Economic Record, The Economic Society of Australia, vol. 80(249), pages 157-176, June.
    10. Elisa Birch, 2014. "The Determinants of Earnings for Indigenous Australian Workers," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 17(3), pages 211-232.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Deborah A. Cobb‐Clark & Lihini De Silva, 2021. "Participation, Unemployment, and Wages," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(4), pages 482-493, December.
    2. Robert Breunig & Syed Hasan & Boyd Hunter, 2019. "Financial Stress and Indigenous Australians," The Economic Record, The Economic Society of Australia, vol. 95(308), pages 34-57, March.
    3. Danielle Venn & Boyd Hunter, 2018. "Poverty transitions in non-remote Indigenous households: The role of labour market and household dynamics," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 21(1), pages 21-44.

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    More about this item

    Keywords

    Personal income; wages; government payments; Indigenous employment; labour market segmentation;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)

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