Time Use, Gender and Disadvantage in Australia: Conventional Income and 'Full Income' Approaches to Estimation

Abstract

Conventional poverty and inequality measures, based only on comparisons of financial resources, may underestimate gender differences in living standards. The value of time spent in household work by oneself and partner, and the value of leisure are key elements that need to be considered in measures of living standards. This article develops a method for measuring wellbeing at the level of the individual, rather than the household. Following the tradition of Australian models of ‘full income’, the final measure of wellbeing includes the value of time in leisure and unpaid work along with individual income, the benefits accruing from the social wage and the welfare gains from the ownership and use of assets. The article then compares the conventional income distribution and the ‘full income’ distribution to identify population subgroups disadvantaged on each of these measures. The results show that gender inequalities in living standards may be underestimated by conventional income measures, and that inequalities in personal income and time use contribute most substantially to gender inequality in the full income distribution.