Trends in the distribution of income and wealth (BEST SLIDESHOW)
Income <ul><li>Personal income is the amount of funds or other benefits, measured in money terms, that flow to individuals or households for the sale of factors of production (usually over a period of time). </li></ul><ul><li>For ease, assume that a high income will lead to a high level of wealth. </li></ul>
Wealth <ul><li>Wealth refers to the value of the stock of assets held by an individual at a particular point in time. </li></ul><ul><li>Wealth inequality is harder to measure than income inequality and is generally more unequal as it cannot be redistributed. </li></ul>
Inequality in income and wealth distribution <ul><li>Some groups in society are affected by inequality more than others, depending on: </li></ul><ul><ul><li>Age and Qualifications </li></ul></ul><ul><ul><li>Gender and Occupation </li></ul></ul><ul><ul><li>Ethnic and Cultural background </li></ul></ul><ul><ul><li>Family type </li></ul></ul><ul><ul><li>Location. </li></ul></ul>
This graph highlights the extent of income inequality in Australia, with the majority of the population experiencing average weekly incomes between $200 to $1200. However, well over half the population experience incomes less than the mean income of $644 per week demonstrating that a relatively small number of households have relatively high incomes, while a large number of households have relatively low incomes.
<ul><li>This graph highlights the extent of wealth inequality in Australia, and that wealth is more unevenly distributed than income. More than half of households have a net worth less than the mean $563,000 however, household wealth has become more even over the last few years. </li></ul>
Age and Education <ul><li>Income varies over the course of life. It is highest between the ages 25 and 59, generally increasing between those ages. Wealth follows a similar pattern - rising for mot of their lifetime, and falling in the 60-64 years age group. </li></ul><ul><li>Obviously, people with more education and experience will hold higher-paying jobs, and thus, have higher levels of income and wealth. </li></ul>
Gender and Occupation <ul><li>Gender also impacts income distribution with males, on average, experiencing higher incomes than females. In 2005-06 (ABS statistics) females earned an average weekly income 65.5% that of males, with only a slight improvement in equality over the last decade. </li></ul>
Ethnic and Cultural background <ul><li>English speaking migrants tend to have higher incomes than those born in Australia, as their skills are often in high demand and will greatly benefit the economy, while non-English speaking migrants face the opposite situation. </li></ul>
Family Structure As suspected, 2003-04 ABS statistics, revealed that Couples without dependant children experienced the highest income and wealth levels ($506 and $402,326 respectively) followed by couples with dependant children, single persons and single parents ($336 and $62,923).
Location <ul><li>Income and wealth inequality is present between Australia’s states and territories and also between major cities, regional and remote areas. </li></ul><ul><li>Distribution of income between states/territories is fairly even, however the ACT is well above the national average. Regional areas experience significantly lower levels of income than remote areas and major cities. </li></ul>