Sean Innis Special Adviser Melbourne, 21 July 2017 The elephant - - PowerPoint PPT Presentation
Income and wealth dynamics in Australia and the world Presented by Sean Innis Special Adviser Melbourne, 21 July 2017 The elephant chart Top 7% worldwide in 2008: includes 50% of Australians Change in real disposable income, 1988 2008
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Poorer <<< Percentile of global income distribution >>> Richer
Source: Corlett (2016); PC estimates
Top 7% worldwide in 2008: includes 50% of Australians
Maximum unemployment benefit 2008 Minimum full-time wage 2008 Average wage 2008
Change in real disposable income, 1988–2008
Australian incomes:
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High inequality/High poverty Low inequality/High poverty High inequality/Low poverty Low inequality/Low poverty No data Source: Mather and Jarosz (2014)
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High inequality/High poverty Low inequality/High poverty High inequality/Low poverty Low inequality/Low poverty No data Source: Mather and Jarosz (2014)
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Source: ABS (2015)
0.5 1 1.5 2 2.5 3 3.5 1,000 2,000 3,000 4,000 5,000 6,000 Lowest quintile Second quintile Third quintile Fourth quintile Highest quintile Annual % growth rate Mean income per week (2013-14$) 1994–95 1997–98 2003-04 2009-10 2013-14 Growth rate (RHS)
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Source: Various data from ABS, DSS and FWC
80 90 100 110 120 130 140 150 Index: 1997 = 100 Average weekly earnings Maximum standard pension rate Minimum wage rate Unemployment benefit
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PC Paper: Trends in the Distribution of Income in Australia (Greenville, Pobke and Rogers 2013)
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Source: ABS (2015) Survey of Income and Housing, 2013-14 Equivalised disposable household income Net wealth
Top share: 40.8% Top share: 62.1% Bottom share: 7.5% Bottom share: 0.9%
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10 20 30 40 50 60 % of respondents belonging to each wealth category
Low wealth Middle wealth High wealth
1st to 3rd income decile 4th to 7th income decile 8th to 10th income decile
Source: ABS (2015)
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Older households are wealthier than younger households and previous older cohorts
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Source: Azpitarte and Bodsworth (2015)
20 40 60 80 100 % 11–12 years 10–11 years 9–10 years 8–9 years 7–8 years 6–7 years 5–6 years 4–5 years 3–4 years 2–3 years 1–2 years 0–1 year
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Source: Productivity Commission based on ABS data
Most adaptive (256) Above average (837) Below average (748) Least adaptive (244) No data