Integrating Income and Wealth for Economic Inequality Analysis in Australia
Introduction
Discusses the traditional focus on income in measuring economic well-being and inequality.
Highlights the necessity of integrating wealth into economic assessments.
Explores historical context and previous studies on economic measures.
Methodology
Utilizes ABS Household Expenditure Survey microdata from 2009-2010.
Describes the integration of wealth into income analysis via annuitisation methods.
Examines two approaches for considering home equity.
Economic Well-Being and Wealth Adjustment
Wealth contributes significantly to wealth-adjusted income, accounting for 20-40%.
Highlights differences between disposable, final, and wealth-adjusted income distributions.
Demonstrates that considering wealth increases perceived inequality.
Findings and Implications
Wealth inequality considerably increases overall economic inequality indicators.
Correlations between income and wealth are moderate, showing varied distributions.
Suggests implications for tax-and-transfer policy regarding economic inequality.
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