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Measuring Poverty and Inequality from Highly Aggregated Small Area Data: The Changing Fortunes of Latrobe Valley Households

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  • Jill Wright

    ()

  • Ma. Rebecca Valenzuela
  • Duangkamon Chotikapanich

    ()

Abstract

The Latrobe Valley generates 85% of Victoria's electricity. The progressive privatisation of the electricity industry between 1989 and 1997, had a lasting effect on income distribution in the region. This paper investigates the change in income level, inequality and poverty for this region between 1986 and 2006. To circumvent data availability issues, we propose a general method of using aggregated data to obtain regional income distributions. We find that in 1986 Latrobe Valley incomes were well above other non-metropolitan areas while inequality measures were relatively low. Mean income subsequently dropped below comparable locations while inequality rose. Although income levels had partially recovered by 2006, inequality measures continued to rise.

Suggested Citation

  • Jill Wright & Ma. Rebecca Valenzuela & Duangkamon Chotikapanich, 2011. "Measuring Poverty and Inequality from Highly Aggregated Small Area Data: The Changing Fortunes of Latrobe Valley Households," Monash Econometrics and Business Statistics Working Papers 4/12, Monash University, Department of Econometrics and Business Statistics.
  • Handle: RePEc:msh:ebswps:2012-4
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    File URL: http://business.monash.edu/econometrics-and-business-statistics/research/publications/ebs/wp4-12.pdf
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    References listed on IDEAS

    as
    1. Philippe Belley & Lance Lochner, 2007. "The Changing Role of Family Income and Ability in Determining Educational Achievement," Journal of Human Capital, University of Chicago Press, vol. 1(1), pages 37-89.
    2. George Athanasopoulos & Farshid Vahid, 2003. "Statistical Inference and Changes in Income Inequality in Australia," The Economic Record, The Economic Society of Australia, vol. 79(247), pages 412-424, December.
    3. Harding, Ann & Lloyd, Rachel & Bill, Anthea & King, Anthony, 2004. "Assessing Poverty and Inequality at a Detailed Regional Level: New Advances in Spatial Microsimulation," WIDER Working Paper Series 026, World Institute for Development Economic Research (UNU-WIDER).
    4. Harding, Ann & Szukalska, Aggie, 2000. "Trends in Child Proverty in Australia, 1982 to 1995-96," The Economic Record, The Economic Society of Australia, vol. 76(234), pages 236-254, September.
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    More about this item

    Keywords

    Poverty; inequality; restructure; privatization; small-area income distribution.;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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