The Long-run Determinants of Australian Income Inequality
MetadataShow full item record
Recent interest has been stimulated by the growth of income inequality in most developed countries during the 1980s and 1990s. However, considerable uncertainty still exists as to which factors have been the most important causes of this development. This article uses a measure of income inequality derived from taxation statistics and a recently proposed method for testing long-run Granger non-causality to examine the key determinants of Australia’s inequality for the years 1970–2001. In line with popular concern, we find that globalisation and technological progress – defined as the global flow of information – has increased income inequality. In contrast, improved terms of trade have been equity-enhancing. Of the institutional determinants, de-unionisation has had an adverse effect on income inequality, where as higher minimum wages have reduced it.
Showing items related by title, author, creator and subject.
Cassells, Rebecca; Miranti, R.; Vidyattama, Y.; McNamara, J. (2015)Measuring income inequality has long been of interest in applied social and economic research in the OECD countries including Australia. This includes measuring income inequality at the regional level. In this article, ...
Miranti, R.; Cassells, Rebecca; Vidyattama, Y.; McNamara, J. (2015)Measuring income inequality has long been of interest in applied social and economic research in the OECD countries including Australia. This includes measuring income inequality at the regional level. In this article, ...
Zhou, Yixiao; Song, L. (2016)The phenomenal economic growth in China has been accompanied by a rapid increase in income inequality. This paper reviews the historical trends and patterns of income inequality in China, discusses the potential causes ...