Are We Richer Than Our Parents Were? Absolute Income Mobility in Australia

35 Pages Posted: 3 Jun 2021

See all articles by Tomas Kennedy

Tomas Kennedy

affiliation not provided to SSRN

Peter Siminski

University of New South Wales (UNSW) - Social Policy Research Centre (SPRC)

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Date Written: May 31, 2021

Abstract

We conduct the first dedicated study of absolute income mobility in Australia, for 1950-2019. About two-thirds of 30-34 year-olds have higher real incomes than their parents did at the same age, and this has been stable for 25 years. This is among the highest levels of absolute mobility in the world. Nevertheless, mobility was considerably higher for baby-boomers (over 80% had higher incomes than their parents). About two-thirds of this decline in mobility is due to lower income growth. The remainder is due to rising inequality. The mobility estimate is higher (78%) when income is adjusted (equivalised) for family size.

Keywords: Intergenerational Mobility, Absolute Mobility, Australia

Suggested Citation

Kennedy, Tomas and Siminski, Peter, Are We Richer Than Our Parents Were? Absolute Income Mobility in Australia (May 31, 2021). Life Course Centre Working Paper No. 2021-07, Available at SSRN: https://ssrn.com/abstract=3858188 or http://dx.doi.org/10.2139/ssrn.3858188

Tomas Kennedy

affiliation not provided to SSRN

Peter Siminski (Contact Author)

University of New South Wales (UNSW) - Social Policy Research Centre (SPRC) ( email )

Sydney, NSW 2052
Australia
+61 2 9385 7827 (Phone)

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