Selected issues for closing the income gaps between Indigenous and other Australians, 2001-11

This paper charts recent changes in personal and household income by combining the first release census data for 2011 with community profiles for Indigenous and other households from the 2001 and 2006 Censuses. Changes in household size and housing cost are also explored in order to appreciate some of the changing pressures on family resources. Image: breahn / flick

Income, work and education: insights for closing the gap in urban Australia

Existing analysis of the Closing the Gap outcomes is limited by the lack of adequate wage data for Indigenous Australians. This paper attempts to redress this situation by using a geography recently developed by the ABS - Significant Urban Areas - to document the crucial relationships between income, labour force status and education. Abstract: Many factors contribute to differences in an individual’s command over resources. One of the factors is differences in labour market engagement and the level of education attainment across different geographical areas. However, existing analysis of the Closing the Gap outcomes is limited by the lack of adequate wage data for Indigenous Australians. Using the newly introduced geography Significant Urban Areas (SUAs), which distinguish between major cities, regional centres and remote areas, this paper analyses average personal income while adjusting for labour force status and education levels. We impute average wage data by focusing on the personal income of people who are employed full-time and assuming that the average weekly personal income is a reasonable approximation of wages. The findings suggest that wage differences between Indigenous and non-Indigenous Australians in urban areas are minimal after education attainment levels are adjusted for, with a gradient in wages according to the level of qualification. There are gender differences in wages in favour of men, both across SUAs and by education level. This is partly a reflection of the structure of employment and segregation in the labour market, which can reach as high as 40 per cent in some the SUAs. Considering the importance of wage data in the theory of economic development, it is essential that direct information on wages is collected in future surveys with a substantial sample of Indigenous Australians

Unpacking the income of Indigenous and non-Indigenous Australians: wages, government payments and other income

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

Footprints in time: the longitudinal study of Indigenous children: guide for the uninitiated

The Longitudinal Study of Indigenous Children is arguably a landmark for the development of an effective policy to address Indigenous disadvantage early in the life cycle. This paper highlights how the study might inform policy-makers by providing some historical context about the survey design and collection. The brief history of LSIC provides an extended rationale for the need for the data and directly reflects on the survey design and methodology. The paper includes an analysis of the strengths and weaknesses of LSIC, with reference to a few selected variables that may be useful in potential research. Some useful research questions are identified that LSIC data may be used to address, and the authors reflect on growing research that is using LSIC data. The community engagement strategy has been integral key to maximising participation and retention rates, especially the use of Indigenous interviewers to elicit potentially sensitive information. The main constraint for analysing the study is the relatively small sample size, which limits the statistical power of the resulting analysis

The economic and social benefits of increasing Indigenous employment

Using the latest available data and research, this paper provides estimates of the likely economic and social benefits of increasing Indigenous employment to the same level as in the non-Indigenous population. Introduction Relatively low rates of employment are one of the reasons for many of the poor economic and social outcomes experienced by Indigenous Australians. Increases in the rate of Indigenous employment would result in significant economic gains to the individuals who move into employment, and their families and communities, to the government who would receive higher tax revenues and have lower social security outlays, and the economy as a whole via the increases in the effective labour supply. The existing research also finds that there are health and social benefits that flow from paid employment. This paper, using the latest available data and research, provides estimates of the likely economic and social benefits of increasing Indigenous employment to the same level as in the non-Indigenous population (i.e. closing the employment gap). It was commissioned by the Department of the Prime Minister and Cabinet to help inform the work of the Indigenous Jobs and Training Review chaired by Andrew Forrest