 Reconciling income mobility and welfare persistenceElliott Fan () and Christopher Ryan No 651, CEPR Discussion Papers from Centre for Economic Policy Research, Research School of Economics, Australian National University Abstract: In this paper, we provide evidence that reconciles the co-existence of high income mobility among people on low income and patterns of high persistence on income support among people whose income from government payments is low – both phenomena have been founded in different Australian studies. We find that these phenomena are evident in data from the Household, Income and Labour Dynamics in Australia (HILDA) survey, but that they reflect the experiences of different groups of individuals. These groups of individuals are around the same size. While there is considerable mobility in income from the lowest two deciles of household equivalised income, this mobility is greater for those not reliant on welfare for the majority of their income than for those who are. The non-welfare reliant individuals appear to have substantially different characteristics compared with those in the (more disadvantaged) welfare reliant group, being much younger, less likely to suffer from a long-term health condition, more likely to be full-time students and less likely to have been divorced than the welfare reliant group. Keywords: welfare reliance; income mobility; public transfers (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:auu:dpaper:651 Access Statistics for this paper More papers in CEPR Discussion Papers from Centre for Economic Policy Research, Research School of Economics, Australian National University Contact information at EDIRC. |
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