Individual Earnings Mobility and the Persistence of Earnings Inequalities in Australia

22 Pages Posted: 4 Mar 2015

See all articles by Rosanna Scutella

Rosanna Scutella

University of Melbourne - Melbourne Institute of Applied Economic and Social Research

Claudia Vittori

University of Rome La Sapienza

Paul Gregg

University of Bath - Department of Social and Policy Sciences

Date Written: March 2015

Abstract

This paper assesses earnings mobility among workers in Australia between 2001/2 and 2008/9 using HILDA household panel data. We examine the pattern of individuals' earnings growth and explore the importance of mobility as an equaliser of longer‐term earnings. We find that progressive earnings growth decreased overall inequality even after considering the re‐ranking that occurred in the distribution. This was partly driven by growth of earnings with age and partly by step changes associated with job‐to‐job moves, promotions and taking on more responsibility. Shocks also acted against this equalising process, most notably job loss, which had substantial negative effects on earnings and disproportionately fell on lower‐waged workers.

Suggested Citation

Scutella, Rosanna and Vittori, Claudia and Gregg, Paul, Individual Earnings Mobility and the Persistence of Earnings Inequalities in Australia (March 2015). Economic Record, Vol. 91, Issue 292, pp. 16-37, 2015. Available at SSRN: https://ssrn.com/abstract=2573326 or http://dx.doi.org/10.1111/1475-4932.12153

Rosanna Scutella

University of Melbourne - Melbourne Institute of Applied Economic and Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia
+61 3 8344 8175 (Phone)
+61 3 8344 5630 (Fax)

HOME PAGE: http://wff1.ecom.unimelb.edu.au/iaesrwww/people/rscutella/

Claudia Vittori

University of Rome La Sapienza ( email )

Via del Castro Laurenziano
Roma, Rome 00161
Italy

Paul Gregg (Contact Author)

University of Bath - Department of Social and Policy Sciences ( email )

Claverton Down
Bath, BA7 2AY
United Kingdom

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