Distribution of the Economic Gains of the 1990s

Productivity Commission Staff Research Paper

194 Pages Posted: 4 Jun 2001

See all articles by Dean Parham

Dean Parham

Government of the Commonwealth of Australia - Productivity Commission

Paula Barnes

Productivity Commission

Paul Roberts

Government of the Commonwealth of Australia - Productivity Commission

Sharon Kennett

Government of the Commonwealth of Australia - Productivity Commission

Date Written: November 2000

Abstract

Australia's surge in productivity growth in the 1990s fuelled an acceleration in growth in total income and average income (income per person in Australia). Annual average income growth accelerated from 1.4 per cent in the 1970s and 1980s to 2.5 per cent in the 1990s. Faster productivity growth accounted for over 90 per cent of the acceleration. The income growth of the 1990s was distributed evenly between labour (wages and salaries) and capital (profits). The labour and capital shares in economywide income were stable throughout the 1990s. Concerns that productivity-enhancing factors have adversely affected the income-earning potential of labour appear to be unfounded at the aggregate level.

Keywords: economic gains, distribution, living standards, income, productivity, employment, wealth, consumption, education, health, housing, environment, working hours

JEL Classification: O

Suggested Citation

Parham, Dean and Barnes, Paula and Roberts, Paul and Kennett, Sharon, Distribution of the Economic Gains of the 1990s (November 2000). Productivity Commission Staff Research Paper, Available at SSRN: https://ssrn.com/abstract=270775 or http://dx.doi.org/10.2139/ssrn.270775

Dean Parham (Contact Author)

Government of the Commonwealth of Australia - Productivity Commission ( email )

Level 28, 35 Collins St.
Melbourne, Victoria, 3000
Australia

Paula Barnes

Productivity Commission ( email )

Level 28, 35 Collins Street
Melbourne, Victoria 3000
Australia

Paul Roberts

Government of the Commonwealth of Australia - Productivity Commission

Level 28, 35 Collins St.
Melbourne, Victoria, 3000
Australia

Sharon Kennett

Government of the Commonwealth of Australia - Productivity Commission

Level 28, 35 Collins St.
Melbourne, Victoria, 3000
Australia

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