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Rising top‐income persistence in Australia: Evidence from income tax data
[Precio de los alimentos y pobreza de ingreso en México: estimaciones regionales]

Author

Listed:
  • Nicolas Hérault

    (BSE - Bordeaux sciences économiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, University of Melbourne)

  • Dean Hyslop

    (Motueka Research Centre)

  • Stephen Jenkins

    (University of London [London], IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics)

  • Roger Wilkins

    (University of Melbourne, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics)

Abstract

Using income tax administrative data for Australia, we examine levels and trends in the persistence in top‐income group membership, focusing on the top 1 percent. Top‐income persistence increased markedly between 1991 and 2018, with most of the increase occurring in the mid‐2000s and early 2010s. In the mid‐ to late‐2010s, Australian top‐income persistence rates were near the top of the range of tax‐data estimates for other countries. We decompose the increase into factors associated with (i) changes in the composition of the top‐income group and (ii) increases in persistence rates for specific population subgroups. We find that the rise in top‐income persistence is accounted for by changes in subgroup persistence rates, notably for individuals aged 35–64, and especially those aged 55–64. We suggest that these effects are partially related to increases in the effective retirement age over the relevant period.

Suggested Citation

  • Nicolas Hérault & Dean Hyslop & Stephen Jenkins & Roger Wilkins, 2024. "Rising top‐income persistence in Australia: Evidence from income tax data [Precio de los alimentos y pobreza de ingreso en México: estimaciones regionales]," Post-Print hal-05461148, HAL.
  • Handle: RePEc:hal:journl:hal-05461148
    DOI: 10.1111/roiw.12628
    as

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    Cited by:

    1. is not listed on IDEAS
    2. Muthitacharoen, Athiphat & Burong, Trongwut, 2023. "Climbing the economic ladder: Earnings inequality and intragenerational mobility among Thai formal workers," Journal of Asian Economics, Elsevier, vol. 89(C).
    3. Del Carmen, Giselle & Garriga, Santiago & Ponce, Wilman & Scot, Thiago, 2025. "Two decades of top income shares in Honduras," Journal of Public Economics, Elsevier, vol. 246(C).

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    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access

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