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Wage and Income Inequality in Two Welfare States: Australia and Sweden

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  • Peter Saunders
  • Johan Fritzell

Abstract

This paper compares aspects and contrasts of income inequality in Australia and Sweden, focusing on the distribution of wage incomes amongst prime aged full-time workers. After some discussion of the economic and labour market contexts of each country, the development of their wages policies is briefly summarised. This is followed by an analysis, using unit record household income survey data for 1990/91, of the factors contributing to overall income inequality in each country, focusing on the role of earnings, self-employment income and government cash transfer payments. A model is then developed to explain the wage incomes of full-time workers in each country and the model is used to make inequality comparisons which adjust for differences in age structure, industry structure and levels of education. The results indicate that taking account of these adjustments leads to remarkably similar distributions of wage income in each country.

Suggested Citation

  • Peter Saunders & Johan Fritzell, 1995. "Wage and Income Inequality in Two Welfare States: Australia and Sweden," Discussion Papers 0060, University of New South Wales, Social Policy Research Centre.
  • Handle: RePEc:wop:sprcdp:0060
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    File URL: http://www.sprc.unsw.edu.au/dp/dp060.pdf
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    Cited by:

    1. Peter Saunders, 1998. "Using Budget Standards to Assess the Well-Being of Families," Discussion Papers 0093, University of New South Wales, Social Policy Research Centre.
    2. Peter Saunders & Cathy Thomson & Ceri Evans, 2000. "Social Change and Social Policy: Results from a Survey of Public Opinion," Discussion Papers 00106, University of New South Wales, Social Policy Research Centre.
    3. Tony Eardley & Peter Saunders & Ceri Evans, 2000. "Community Attitudes Towards Unemployment, Activity Testing and Mutual Obligation," Discussion Papers 00107, University of New South Wales, Social Policy Research Centre.
    4. Bruce Bradbury, 1999. "Tax Theory and Targeting: A Survey," Discussion Papers 00100, University of New South Wales, Social Policy Research Centre.

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