Poverty, Income Distribution and Health: An Australian Study

Abstract

Previous research conducted at the Social Policy Research Centre and elsewhere has identified a trend towards increasing inequality of money income in Australia over the last two decades. That trend is most pronounced in relation to market incomes, but it is also apparent after account is taken of the receipt of cash transfers and the payment of income taxes. A similar trend has also been taking place in many other countries. As economic and public policies continue to rely on a liberal economic model in which market forces play an increasing role, the trend to inequality seems set to continue. This report analyses the relationship between poverty, income distribution and a number of measures of the health status of the population. The analysis is conducted using both aggregate data for a range of member countries of the Organisation for Economic Cooperation and Development (OECD) and disaggregate data for Australian families. The data used in the international component of the research are taken from the World Bank and the Luxembourg Income Study, while the Australian component relies on the national health and income distribution surveys undertaken by the Australian Bureau of Statistics in 1990.