Effects of Changes in Family Composition and Employment Patterns on the Distribution of Income in Australia: 1981-1982 to 1997-1998

20 Pages Posted: 20 Jun 2004

See all articles by David Johnson

David Johnson

Government of Victoria - Department of Treasury and Finance

R Wilkins

affiliation not provided to SSRN

Abstract

We examine income distributions over the last two decades, presenting both non-parametric kernel density estimates and summary measures. Standard errors of summary measures are also reported to facilitate statistical inference. We find a significant increase in private income inequality, but only a modest increase in disposable income inequality, implying an increase in the inequality-reducing effects of income taxes and transfers. Using a semi-parametric procedure developed by DiNardo et al. (1996), we then examine the effects of changes in family characteristics on the distribution of private income, finding that half the increase in inequality is explained by changes in the distribution of employment.

Suggested Citation

Johnson, David and Wilkins, Roger, Effects of Changes in Family Composition and Employment Patterns on the Distribution of Income in Australia: 1981-1982 to 1997-1998. Economic Record, Vol. 80, No. 249, pp. 219-238, June 2004. Available at SSRN: https://ssrn.com/abstract=551182

David Johnson

Government of Victoria - Department of Treasury and Finance ( email )

Melbourne, Victoria
Australia

Roger Wilkins (Contact Author)

affiliation not provided to SSRN

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