Are We Richer Than Our Parents Were? Absolute Income Mobility in Australia
35 Pages Posted: 3 Jun 2021
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Are We Richer Than Our Parents Were? Absolute Income Mobility in Australia
Are We Richer than Our Parents Were? Absolute Income Mobility in Australia
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
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