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Are recent trends in poverty and deprivation in Australia consistent with trickle-down effects?

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Listed:
  • Peter Saunders
  • Yuvisthi Naidoo
  • Melissa Wong

Abstract

This article examines trends in social disadvantage in Australia over the decade to 2018 using two approaches: a monetary approach using poverty and a living standards approach using deprivation. We compare the two approaches, highlight their implications and assess whether the evidence produced by each is consistent with trickle-down effects. The estimates allow for variations in thresholds, the treatment of housing costs and relative and absolute measures. The findings indicate an overall decline in poverty that is dependent on the treatment of housing costs and a more consistent decline in deprivation but with little or no improvement for many experiencing poverty or deprivation. Poverty and deprivation among unemployed households were above those for people in other labour force states throughout the period and while these differentials have narrowed, the findings suggest that trickle-down effects did not reach many of those highly disadvantaged or are subject to long delays. JEL Codes: I32, E65, H55

Suggested Citation

  • Peter Saunders & Yuvisthi Naidoo & Melissa Wong, 2022. "Are recent trends in poverty and deprivation in Australia consistent with trickle-down effects?," The Economic and Labour Relations Review, , vol. 33(3), pages 566-585, September.
    • Handle: RePEc:sae:ecolab:v:33:y:2022:i:3:p:566-585
    DOI: 10.1177/10353046221112715
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    References listed on IDEAS

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    1. Peter Saunders & Yuvisthi Naidoo, 2009. "Poverty, Deprivation and Consistent Poverty," The Economic Record, The Economic Society of Australia, vol. 85(271), pages 417-432, December.
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    Keywords

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    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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