Australia’s economic inequality rises to highest in 20 years
ECONOMIC inequality in Australia has climbed to the highest level in more than 20 years, according to a highly regarded survey in which more than half of respondents reported a decline in their real incomes.
That’s one of the findings in the latest Hilda study that collects information about economic and personal well-being, labour market dynamics and family life in Australia and was released on Thursday (Mar 6). The latest survey period is for 2022.
The study revealed that post-pandemic, higher incomes have grown faster than middle incomes, while the growth of lower incomes has stagnated, further exacerbating inequality. In 2022, the Gini coefficient, a key measure of income inequality, rose to 0.32, the first time the figure has risen above 0.31 since 2001, according to the report.
That reading came not long after the lowest ever recorded Gini coefficient of 0.289 in 2020, which reflected government support provided during the Covid pandemic that reduced inequality.
“After the initial effect of the pandemic, higher incomes in Australia have grown faster relative to middle incomes. At the same time, the relative growth of lower incomes has declined, which drives inequality up and makes it harder for poorer Australians to move into higher income groups”, said professor Roger Wilkins, the lead author and co-director of the Hilda Survey.
This is consistent with survey findings that reveal more than half of respondents reported their real income fell between 2021 and 2022.
Other findings reveal broader inequality trends:
- Childcare costs have risen more sharply for single parents, increasing by 76 per cent per child since 2006, compared to 48 per cent for couples.
- For women, inequality increased by 10.5 per cent over the course of the survey, meaning wage differences among female workers grew more than among male workers.
- Full-time female employees experienced declines in earnings. The average dropped by 4.8 per cent while middle-income earnings fell by 6.8 per cent.
The Hilda Survey uses data collected over more than two decades, with the same 17,000 people interviewed year on year. BLOOMBERG
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