Evaluating the Evidence on Income Inequality in Australia in the 2000s

Roger Wilkins ()

Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne

Abstract: Published ABS data from the Survey of Income and Housing (SIH) show a substantial increase in income inequality between 2001 and 2010. However, almost all of the increase occurred over a period when changes in survey methodology and income concept were occurring. I document these changes, present results of analysis of the SIH unit record data, and present independent evidence on income inequality trends using the HILDA Survey, tax records and National Accounts. I conclude that the SIH overstates the growth in income inequality, even when the income variable examined is notionally consistently defined across surveys. The extent of overstatement is uncertain, however, reflecting ambiguity about the nature and extent of changes to the distribution of household market income.

Keywords: Income inequality; household surveys; decomposition (search for similar items in EconPapers)
JEL-codes: D3 (search for similar items in EconPapers)
Pages: 59pp
Date: 2013-07
New Economics Papers: this item is included in nep-ltv and nep-pbe
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Citations: View citations in EconPapers (3)

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Journal Article: Evaluating the Evidence on Income Inequality in Australia in the 2000s (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:iae:iaewps:wp2013n26

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