Income Inequality, Mobility And Economic Insecurity In Australia
In this paper we analyze income inequality and mobility using the first six waves of the HILDA (Household Income and Labour Dynamics in Australia) panel survey. The mobility of Australian incomes is measured and our evidence suggests that domestic wages and salaries are slightly less mobile than incomes in some other developed countries. This mobility is investigated in greater detail and it is found that much of the intertemporal variation occurs in the middle and lower end of the income distribution. Lastly we recognize that the mobility of an individual’s income may be used as a measure of economic insecurity and we present measures of permanent income inequality that account for this phenomenon. We find that permanent income inequality increases substantially when adjustments to account for aversion to volatility are performed.
|Date of creation:||2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +61 7 3365 6570
Fax: +61 7 3365 7299
Web page: http://www.uq.edu.au/economics/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Barrett, Garry F & Crossley, Thomas F & Worswick, Christopher, 2000.
"Consumption and Income Inequality in Australia,"
The Economic Record,
The Economic Society of Australia, vol. 76(233), pages 116-38, June.
- Allanson, Paul, 2008.
"On the characterisation and measurement of the welfare effects of income mobility from an ex-ante perspective,"
SIRE Discussion Papers
2008-48, Scottish Institute for Research in Economics (SIRE).
- Paul Allanson, 2008. "On the characterisation and measurement of the welfare effects of income mobility from an ex-ante perspective," Dundee Discussion Papers in Economics 219, Economic Studies, University of Dundee.
- Richard Blundell & Ian Preston, 1997.
"Consumption, inequality and income uncertainty,"
IFS Working Papers
W97/15, Institute for Fiscal Studies.
- Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
- Ann Harding, 1997. "The Suffering Middle: Trends in Income Inequality in Australia, 1982 to 1993-94," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 30(4), pages 341-358.
- Leigh Andrew, 2007. "Intergenerational Mobility in Australia," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-28, December.
- Aaberge, Rolf, et al, 2002.
"Income Inequality and Income Mobility in the Scandinavian Countries Compared to the United States,"
Review of Income and Wealth,
International Association for Research in Income and Wealth, vol. 48(4), pages 443-69, December.
- Rolf Aaberge & Anders Björklund & Markus Jäntti & Mårten Palme & Peder J. Pedersen & Nina Smith & Tom Wennemo, 1996. "Income Inequality and Income Mobility in the Scandinavian Countries Compared to the United States," Discussion Papers 168, Statistics Norway, Research Department.
- Aaberge, Rolf & Björklund, Anders & Jäntti, Markus & Palme, Mårten & Pedersen, Peder & Smith, Nina & Wennemo, Tom, 1996. "Income Inequality and Income Mobility in the Scandinavian Countries Compared to the United States," SSE/EFI Working Paper Series in Economics and Finance 98, Stockholm School of Economics, revised Aug 2002.
- Jarvis, Sarah & Jenkins, Stephen P, 1998. "How Much Income Mobility Is There in Britain?," Economic Journal, Royal Economic Society, vol. 108(447), pages 428-43, March.
- Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
- Richard V. Burkhauser & John G. Poupore, 1997. "A Cross-National Comparison Of Permanent Inequality In The United States And Germany," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 10-17, February.
When requesting a correction, please mention this item's handle: RePEc:qld:uq2004:407. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SOE IT)
If references are entirely missing, you can add them using this form.