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Effects of Changes in Family Composition and Employment Patterns on the Distribution of Income in Australia: 1981–1982 to 1997–1998
Author(s) -
Johnson David,
Wilkins Roger
Publication year - 2004
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.2004.00174.x
Subject(s) - economics , distribution (mathematics) , income distribution , inequality , econometrics , economic inequality , parametric statistics , income inequality metrics , demographic economics , mathematics , statistics , mathematical analysis
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.