Unpacking the Income of Indigenous and Non-Indigenous Australians: Wages, Government Payments and other Income

Monica Howlett, Matthew Gray, Boyd Hunter

    Research output: Working paper

    Abstract

    This paper compares the level and source of income for Indigenous and non-Indigenous Australians using data from the 2011 wave of the Household Income and Labour Dynamics in Australia (HILDA) survey. Three sources of income are considered: wages and salaries; government benefits; and income from businesses, investments and other private transfers. Consistent with many previous studies, Indigenous Australians have, on average, lower total income than non-Indigenous Australians, with this difference being largest for those who are full-time employed. The difference is also larger for males than females. In terms of non-wage income, Indigenous men and women receive a much smaller proportion of income from other sources than their non-Indigenous counterparts (primarily business and investment income). This is particularly the case for those who are not in the labour force (NILF). Correspondingly, government benefits constitute a higher proportion of income for the Indigenous population than for the non-Indigenous population. This is true for both males and females, and for all labour force statuses, although the difference is largest for part-time employed and those who are NILF. Given that Indigenous people are also more likely to be unemployed than non-Indigenous people, they are more likely to be dependent solely on government payments as a source of income at any one time. The implications of these findings are discussed, as well as directions for future research.
    Original languageEnglish
    Place of PublicationCanberra, Australia
    PublisherAustralian National University
    Pages1-22pp
    ISBN (Print)0 7315 4998 8
    Publication statusPublished - 2015

    Publication series

    Name
    ISSN (Print)1442-3871

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