The Times Australia
The Times World News

.
The Times Real Estate

.

Unequal? Our analysis suggests Australia is a more equal society than has been thought

  • Written by Roger Wilkins, Professorial Fellow and Deputy Director (Research), HILDA Survey, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne
Unequal? Our analysis suggests Australia is a more equal society than has been thought

It has long been known that incomes in Australia are more evenly distributed than in the United States.

But Australia has been thought to be a less equal society than many European ones, sitting somewhere in the middle between the United States and countries such as France.

We can measure income equality using the so-called Gini coefficient[1], which gives a score of 0 to a country in which incomes are completely evenly distributed and a score of 1 to a country in which one person has all the income.

The OECD gives the US a score of 0.375, Australia a score of 0.32[2] and France a score of 0.29.

But we’ve done work using a broader measure of income[3] that incorporates all taxes paid, all company profits and (importantly) in-kind benefits such as health and education. And we’ve found the positions of Australia and France are reversed.

The US has an even less equal distribution of incomes under this measure (0.49 compared to 0.375), France a somewhat less changed distribution (0.33 compared to 0.29), and Australia a more equal distribution (0.28 compared to 0.32), making Australia the most equal country of the three in terms of income broadly defined.

We can show this in another way, comparing the share of broadly defined national income going to the top 10% of income earners.

On this measure, the US is easily the least equal of the three, with high earners getting 39% of national income. In Australia and France they get about 25%.

The US is also the least equal of the three, with Australia and France almost tied, when comparing the share of broadly defined income going to the bottom 50%.

In Australia and France, the bottom 50% get the most, at around 29%. In the US, the least, at 19%

We used a method pioneered by researchers in the US and Europe[4] that combines household survey data, administrative tax data and national accounts data to create what are known as distributional national accounts[5].

Compared with previous measures of inequality, it fully accounts for the effects of Australia’s system of in-kind government provision of services such as health and education, all company profits (including those not paid out as dividends) and all taxes including income tax, company tax and the goods and services tax.

Although we find Australian incomes are much more evenly distributed than previously thought, they have gotten less equal in the past three decades.

Since 1991, the average incomes of Australia’s top 1% – and the top 0.1% in particular – have grown far faster than the average incomes of the bottom 90%.

Read more: Who gets what? Who pays for it? How incomes, taxes and benefits work out for Australians[6]

We also find a persistent gender gap in incomes, even when we account for income sharing in households, and for government spending on education, health, housing and social programs. Broadly measured, female economic wellbeing remains below that of males.

Our approach, described in full in our paper[7] and guided by previous studies for France[8] and the US, leaves room for refinement.

But it is enough to make clear that standard measures that leave out components of income and don’t account for taxes and benefits don’t tell the full story.

References

  1. ^ Gini coefficient (corporatefinanceinstitute.com)
  2. ^ 0.32 (data.oecd.org)
  3. ^ broader measure of income (docs.iza.org)
  4. ^ Europe (www.aeaweb.org)
  5. ^ distributional national accounts (wid.world)
  6. ^ Who gets what? Who pays for it? How incomes, taxes and benefits work out for Australians (theconversation.com)
  7. ^ paper (docs.iza.org)
  8. ^ France (doi.org)

Read more https://theconversation.com/unequal-our-analysis-suggests-australia-is-a-more-equal-society-than-has-been-thought-202950

The Times Features

Best Deals on Home Furniture Online

Key Highlights Discover the best deals on high-quality outdoor furniture online. Transform your outdoor space into a stylish and comfortable oasis. Explore a wide range of d...

Discover the Best Women's Jumpers for Every Season

Key Highlights Explore lightweight jumpers for spring and summer, ensuring breathability and ease. Wrap up warm with cozy wool jumpers for the chilly autumn and winter season...

Uncover the Elegance of Gorgeous Diamond Tennis Necklaces

Key Highlights Diamond tennis necklaces are a timeless piece of jewelry that exudes elegance and sophistication. They feature a continuous line of brilliant-cut diamonds, cre...

Dental Implants vs. Dentures: Which Is Better for You?

When it comes to replacing missing teeth, two of the most common options are dental implants and dentures. Both have their advantages and disadvantages, so choosing between them ...

What Neck Pain Really Means (And Why It’s More Than Just Poor Posture)

Neck pain is often brushed off as something temporary — a tight spot after a long day at the desk or a poor night’s sleep. But when the discomfort keeps returning, it could be a ...

The Work of Gosha Rubchinskiy: Fashion, Culture, and Youth

From Designer to Cultural Architect Gosha Rubchinskiy is not just a fashion designer—he's a cultural force. Born in Moscow in 1984, Rubchinskiy began his career in fashion in t...

Times Magazine

The Essential Guide to Transforming Office Spaces for Maximum Efficiency

Why Office Fitouts MatterA well-designed office can make all the difference in productivity, employee satisfaction, and client impressions. Businesses of all sizes are investing in updated office spaces to create environments that foster collaborat...

The A/B Testing Revolution: How AI Optimized Landing Pages Without Human Input

A/B testing was always integral to the web-based marketing world. Was there a button that converted better? Marketing could pit one against the other and see which option worked better. This was always through human observation, and over time, as d...

Using Countdown Timers in Email: Do They Really Increase Conversions?

In a world that's always on, where marketers are attempting to entice a subscriber and get them to convert on the same screen with one email, the power of urgency is sometimes the essential element needed. One of the most popular ways to create urg...

Types of Software Consultants

In today's technology-driven world, businesses often seek the expertise of software consultants to navigate complex software needs. There are several types of software consultants, including solution architects, project managers, and user experienc...

CWU Assistive Tech Hub is Changing Lives: Win a Free Rollator Walker This Easter!

🌟 Mobility. Independence. Community. All in One. This Easter, the CWU Assistive Tech Hub is pleased to support the Banyule community by giving away a rollator walker. The giveaway will take place during the Macleod Village Easter Egg Hunt & Ma...

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

LayBy Shopping