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This report was published by the former Department of Families, Community Services (FaCS).
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Attachment A: Inequality and poverty studies

Inequality studies
STUDY INCOME CONCEPT PERIOD DATA SOURCE MAIN RESULTS

Bradbury and
Doyle 1992

Cash disposable income,
equivalised

1983-84 to
1989-90

Microsimulation,
IDS

Gini increased from 0.367
to 0.370

Gregory 1993

Individual gross earnings,
not equivalised

1976 to 1990

Weekly Earnings
of Employees
(WEED)

Growth in low paid and
high-paid jobs—the
'disappearing middle'

Saunders
1993

Cash disposable income,
equivalised

1981-82 to
1989-90

IDS

Gini increased from 0.27
to 0.29

Harding 1994

Gross income, equivalised

1981-82 to
1989-90

IDS

No change in Gini

Raskall and
Urquhart 1994

Social wage income (health,
schooling), equivalised

1982-83 to
1989-90

Microsimulation,
IDS

Gini increased from 0.272
to 0.276

Whiteford 1994

Cash disposable income,
equivalised

1982-83 to
1989-90

Microsimulation,
IDS

Gini fell from 0.328 to
0.319

Gregory and
Hunter 1995

Gross household income of
areas, not equivalised

1976 to 1991

Census

Gini increased from 0.14
to 0.18; incomes fell
for low-income areas
between 1976 and 1981
and rose for rich between
1981 and 1991

Harding 1995

Social wage income
(health, education,
housing, child care),
equivalised after housing

1994

Microsimulation,
IDS

Gini for cash disposable
income of 0.308, for final
income of 0.289

Johnson et al.
1995

A. Cash disposable income,
Equivalised
B. Social wage income
(health, education, housing,
child care, concessions),
equivalised

1981-82 to
1993-94

Microsimulation,
HES

A. Gini fell from 0.308 to
0.296
B. Gini fell from 0.255 to
0.226

OECD Atkinson
et al. 1995

Cash disposable income,
equivalised

1981-82 to
1985-86

IDS

Gini increased from 0.287
to 0.295; P90-P10 fell
from 4.05 to 4.01

ABS 1996

Final income (social wage
plus indirect taxes), not
equivalised

1984 to
1993-94

HES

Q5-Q1 increased from 4.5
to 4.7

Borland and
Wilkins 1996

Individual gross earnings,
not equivalised

1975 to 1994

WEED; Income
Distribution
Survey (IDS)

Real weekly earnings of
males fell at 10th percentile
and rose at 90th percentile

ABS 1999

Gini—gross income of
income units

1994-95 to
1997-98

IDS

Income distribution of
all income units almost
unchanged. Gini of 0.446
not significantly different
from that of previous years

Barrett et al.
1999

Consumption inequality

1975 to 1993

HES

Income and consumption
inequality both rose,
income inequality
grew much more than
consumption inequality

Lloyd et al.
2000

Mean income by location

1986 to 1996

Census

Income of metropolitan
residents increased double
the rate of those in major
urban centres and regional
towns. Between 1991 and
1996, rural towns had the
largest increase

Saunders
2001

Wage and salary, market
income, gross income,
disposable income and
equivalent disposable

1990 to
1999-00

IDS, and SIHC

Wage and salary Gini
increased from 0.224 in
1990 to 0.275 in 1999-00.
Market Gini rose from
0.543 to 0.572. Gross Gini
rose from 0.427 to 0.445.
Disposable Gini rose from
0.375 to 0.391. Equivalent
disposable Gini rose from
0.330 to 0.346. Australia 6th
most unequal country out
of 20 in 1995

 

Poverty studies
STUDY POVERTY CONCEPT PERIOD DATA SOURCE MAIN RESULTS

Saunders 1990

A. Henderson, CPI
B. Henderson, Household
Disposable Income per
Capita (HDIPC)

1982-83 to
1989-90

Microsimulation,
IDS

A. Poverty rate fell from
8.9% to 6.5%
B. Poverty rate rose from
8.9% to 11.6%

Saunders and
Matheson 1991

Henderson, HDIPC

1981-82 to
1989-90

IDS

Poverty rate rose from
9.2% to 12.8%

Bradbury and
Doyle 1992

A. Henderson, CPI
B. Henderson, average
survey income

1983-84 to
1989-90

Microsimulation,
IDS

A. Poverty rate fell from
11.3% to 9.4%
B. Poverty rate rose from
11.3% to 11.4%

Harding and
Mitchell 1992

50% of median income

1981-82 to
1989-90

IDS

Poverty fell from 11.0% to
9.5%

Mitchell and
Harding 1993

60% of median income,
poverty gap

1981-82 to
1989-90

IDS

Poverty gaps stable or
falling slightly

Saunders and
Matheson 1993

50% of median income

1981-82 to
1989-90

 

IDS Poverty rose from
9.3% to 9.4%

Saunders 1994

Henderson, HDIPC

1981-82 to
1989-90

IDS

Poverty rose from 10.7% to
16.7%

Harding 1995

50% of median income,
before and after the 'social
wage'

1994

Microsimulation,
IDS

Poverty substantially
reduced by 'social wage'
(from 12% to 4% for
couples with children)

King and
Landt 1996

A. Henderson, all costs
B. Henderson, after
housing costs

1995

Microsimulation,
IDS

A. Poverty at 11.8%
B. Poverty at 9.2%

OECD 1996

50% of median income

1981-82 to
1989-90

Luxembourg
Income Study
(LIS), IDS

Poverty rose from 14.4% to
16.1%

ABS 1998

A. Henderson
B. Half median

1995-96

Income survey—
income units

A. 20.5% income unit,
21.5% children
B. 10.2% income unit,
12.2% children

King 1998

Henderson, HDIPC

1972-73 to
March 1996

Income
survey and
microsimulation

1. Very poor, rose from
12.5% to 16.7%
2. Rather poor, rose from
20.6% to 30.4%
3. Extremely poor, fell from
3.9% to 3.3%

OECD 1998

50% of median income

1975 to 1994

HES

Poverty fell from 11.9% to
9.5%

Bradbury and
Janti 1999
(UNICEF/Innocenti)

A. 50% median income
B. US poverty line

1994

HES, LIS

A. Child poverty rate
17.1%—5th highest for
industrialised countries
B. Child poverty 20.7%—11th
highest

Harding and
Szukalska
1999

Henderson, half mean,
half median

1982 to
1995-96

Income
survey and
microsimulation

Child poverty (half median)
fell from 13.6% in 1982 to
8.0% in 1995-96

Forster and
Pellizari 2000

50% and 60% median
income

1975 to 1994

HES

Poverty and Gini rose
between mid-70s and mid-
80s and fell to mid-90s

Harding and
Szukalska
2000 (The
Smith Family)

Range of measures before
and after housing poverty

May 1999

Income survey
with limited
updating

Total poverty rates between
9.6% and 20.5%, child
poverty 9.3% to 26.8%.
Half mean poverty fell from
14.6% in 1982 to 13.3% in
1999

Harding and
Szukalska
2000

Henderson, half mean,
half median

1982 to
1997-98

Income
survey and
microsimulation

Child poverty fell by
1/3 from 1982 (13.1%
half median) to 1996-97
(7.3%) but then increased
in 1997-98 (8.8%)—HPL
showed rise over period

Harding,
Lloyd and
Greenwell,
Nov 2001

Half mean, Henderson
equivalence scale

1990-2000

Income surveys

Poverty increased over
the decade from 11.3% to
13.0%.

Smeeding,May
2001

A. Official US poverty line
and equivalence scales,
OECD purchasing power
parities
B. 40% median,
equivalence scale is square
root of family size

1994

LIS

A. 17.6%—the highest of
11 listed OECD countries
B. 7.0%, ranked third
highest of 19 rich countries

ABS Measuring
Australia's
Progress, 2002

A. Half mean
B. half median, using
OECD equivalence scale

1994-95 to
1997-98

SIHC

A. Increase over period from
18.7% to 19.6%
B. Increase from 8.4%
to 8.6% (not statistically
significant)

Source: Whiteford & Angenent, updated by FaCS

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Glossary of abbreviations

6. Summary