Household Inequality and Risk Sharing in Australia

Global Economic Review (2020), https://doi.org/10.1080/1226508X.2020.1862692

39 Pages Posted: 5 Mar 2016 Last revised: 30 Dec 2020

See all articles by Youjin Hahn

Youjin Hahn

Yonsei University

Stephen Matteo Miller

George Mason University - Mercatus Center

Hee-Seung Yang

Yonsei University

Date Written: November 11, 2020

Abstract

This study presents estimates of multi-dimensional household inequality in Australia from 2001-2017. Household earnings inequality declines through the sample, while inequality for household disposable income, non-durable consumption expenditures, food expenditures and net worth exhibits little change. The relatively unchanging non-durable consumption expenditures, even over the life cycle, suggests households insure consumption against idiosyncratic shocks. Standard regression estimates of consumption growth against income shocks confirm this finding. Quantile regression estimates indicate households experiencing negative (positive) consumption growth have more sensitivity to negative (positive) income shocks than households with positive (negative) consumption growth, although coefficient estimates have small magnitudes.

Keywords: Consumption inequality; Earnings inequality; Household inequality; Wealth inequality; Quantile Risk Sharing

JEL Classification: D31, D33, D81, E21, H24

Suggested Citation

Hahn, Youjin and Miller, Stephen Matteo and Yang, Hee-Seung, Household Inequality and Risk Sharing in Australia (November 11, 2020). Global Economic Review (2020), https://doi.org/10.1080/1226508X.2020.1862692, Available at SSRN: https://ssrn.com/abstract=2741170 or http://dx.doi.org/10.2139/ssrn.2741170

Youjin Hahn

Yonsei University ( email )

Seoul
Korea, Republic of (South Korea)

Stephen Matteo Miller

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

Hee-Seung Yang (Contact Author)

Yonsei University ( email )

50 Yonsei-ro, Seodaemun-gu
Seoul, 03722
Korea, Republic of (South Korea)
82 2 2123 2480 (Phone)

HOME PAGE: http://sites.google.com/site/heeseungyang/

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