The Long-run Determinants of Australian Income Inequality
Recent interest has been stimulated by the growth of income inequality in most developed countries during the 1980s and 1990s. However, considerable uncertainty still exists as to which factors have been the most important causes of this development. This article uses a measure of income inequality...
| Main Authors: | , |
|---|---|
| Format: | Journal Article |
| Published: |
Wiley-Blackwell Publishing Asia
2009
|
| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/16834 |
| _version_ | 1848749290431709184 |
|---|---|
| author | Gaston, Noel Rajaguru, G. |
| author_facet | Gaston, Noel Rajaguru, G. |
| author_sort | Gaston, Noel |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Recent interest has been stimulated by the growth of income inequality in most developed countries during the 1980s and 1990s. However, considerable uncertainty still exists as to which factors have been the most important causes of this development. This article uses a measure of income inequality derived from taxation statistics and a recently proposed method for testing long-run Granger non-causality to examine the key determinants of Australia’s inequality for the years 1970–2001. In line with popular concern, we find that globalisation and technological progress – defined as the global flow of information – has increased income inequality. In contrast, improved terms of trade have been equity-enhancing. Of the institutional determinants, de-unionisation has had an adverse effect on income inequality, where as higher minimum wages have reduced it. |
| first_indexed | 2025-11-14T07:18:35Z |
| format | Journal Article |
| id | curtin-20.500.11937-16834 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T07:18:35Z |
| publishDate | 2009 |
| publisher | Wiley-Blackwell Publishing Asia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-168342017-09-13T13:36:44Z The Long-run Determinants of Australian Income Inequality Gaston, Noel Rajaguru, G. Income inequality Long-run Granger Non-causality Recent interest has been stimulated by the growth of income inequality in most developed countries during the 1980s and 1990s. However, considerable uncertainty still exists as to which factors have been the most important causes of this development. This article uses a measure of income inequality derived from taxation statistics and a recently proposed method for testing long-run Granger non-causality to examine the key determinants of Australia’s inequality for the years 1970–2001. In line with popular concern, we find that globalisation and technological progress – defined as the global flow of information – has increased income inequality. In contrast, improved terms of trade have been equity-enhancing. Of the institutional determinants, de-unionisation has had an adverse effect on income inequality, where as higher minimum wages have reduced it. 2009 Journal Article http://hdl.handle.net/20.500.11937/16834 10.1111/j.1475-4932.2009.00539.x Wiley-Blackwell Publishing Asia restricted |
| spellingShingle | Income inequality Long-run Granger Non-causality Gaston, Noel Rajaguru, G. The Long-run Determinants of Australian Income Inequality |
| title | The Long-run Determinants of Australian Income Inequality |
| title_full | The Long-run Determinants of Australian Income Inequality |
| title_fullStr | The Long-run Determinants of Australian Income Inequality |
| title_full_unstemmed | The Long-run Determinants of Australian Income Inequality |
| title_short | The Long-run Determinants of Australian Income Inequality |
| title_sort | long-run determinants of australian income inequality |
| topic | Income inequality Long-run Granger Non-causality |
| url | http://hdl.handle.net/20.500.11937/16834 |