Left Behind? Inequality and Inclusive Growth - Assessing the Australian experience

Abstract

This chapter sets out the key trends in inequality and in household incomes and its components across the distribution in the case of Australia, and brings out the distinctive features at work. These relate both to the nature of the economy and to the institutional structures in the labour market and the tax–transfer system. It brings out that much of the growth in real incomes for ordinary households since the 1980s was concentrated in the resources boom of the 2000s. Inequality has increased despite wage-setting institutions that are distinctive among Anglo-Saxon/liberal welfare states and a tax–transfer system that is particularly effective in directing support to lower-income households. Prospects for future growth are of particular concern given the macroeconomic context.