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Inequality, Risk-Sharing and the Crisis: A View From Australia

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  • Youjin Hahn
  • Stephen Matteo Miller
  • Hee-Seung Yang

Abstract

We document the cross-sectional stylized facts of inequality for Australian households between 2001 and 2012 using the Household, Income and Labour Dynamics in Australia (HILDA) survey. Inequality of individual wages, hours worked and earnings remain flat. Household pre-government income and non-durable consumption inequality decline slightly. Household income inequality exceeds non-durable consumption inequality during the global financial crisis, and over the life-cycle, suggesting households partially insure income shocks. The degree of progressivity and private intermediation of risk are high. Both equivalized net financial wealth and net total wealth inequality remain relatively flat. Taxes and transfers reduce the variance of permanent shocks.

Suggested Citation

  • Youjin Hahn & Stephen Matteo Miller & Hee-Seung Yang, 2016. "Inequality, Risk-Sharing and the Crisis: A View From Australia," Monash Economics Working Papers 15-16, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2016-15
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    Cited by:

    1. Owen Freestone, 2018. "The Drivers of Life‐Cycle Wage Inequality in Australia," The Economic Record, The Economic Society of Australia, vol. 94(307), pages 424-444, December.

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    More about this item

    Keywords

    Consumption inequality; income inequality; and wealth inequality; Inequality over the life cycle; Risk-Sharing; Vulnerability;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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