Australia's distribution repor
Factors affecting Australia's distribution of income and wealthThere are many factors affecting the distribution of income (Y) and wealth which can be grouped into either variations in socioeconomic characteristics, the developments in the economy and changes in the labour market.1. Gender (Despite Equal Pay for Equal Work 1969, inequality still exists)- The average Y for females is considerably lower than males in major areas of occupation, and even in the same occupation category- Females receive less % of their Y from earned sources (wages, business, trade etc) and receive more government benefits e.g. single parent assistance - Y tends to be highest between 25- 54 years (45-54 the highest)- Males and females 15- 24 less as they have less education and training, and experience- Different occupations require different levels of educational skills/qualifications- There is unequal Y distribution across 8 major occupational groups e.g. the highest paid group are the managers and administrators (involve high risk decision making etc) and the lowest are labourers and semi-skilled workers
However this could lead to UnN as conditions are not desirable for employers - the cost/value of human capital has increased. the young and the low-skilled)- Long-term UnN is also a major problem in recent times - and the longer they are out of work the harder it is to find a job again and they become permanently reliant on government benefits and entrenched in poverty2. Cultural background- Statistics show that migrants from non-English speaking backgrounds have the lowest overall Y, while migrants from English-speaking have the highest- The point of residence for migrants also has impacts e. Microeconomic policies aim to improve efficiency of the economy and this requires restructuring which can create UnN in the short term. This means a higher amount to be repaid on things such as home loans, shifting the wealth from low to high y earners. These jobs also tend to have lower Ys and suffer greater fluctuations in their Y; they also receive less safety net awards- Structural changes such as the shrinking manufacturing industry and shift towards the services sector results in greater inequality of Y distribution as wages are often higher in this sector- Deregulation of the labour market during the 1990s has also widened the gap between wage earners: under enterprise agreements greater skilled workers and strong union representation have increased wage levels of around 4- 5% in recent years, while lower skilled workers still rely on Industrial Awards for wage increasesPossible policies for promoting greater equalityThe government does not aim to achieve a perfectly equal distribution of Y and wealth in the economy, but instead implements policies to reduce the extent of inequality. Unemployment (UnN)- Persistent levels of UnN in Australia since the 1970s probably the most significant factor in creating the widening gap between high and low Y earners- The reliance on government benefits by the unemployed is made worse by the fact that it occurs more frequently among low Y earners (i. Therefore the government must find a balance in its policy implementations to improve both the economic welfare of the country and the domestic issue of Y and wealth inequality. The government could also review the safety net and modify the conditions to increase the number of those eligible for the awards. Globalisation- Integration with the global economy has exposed Australia to the fluctuations of the international business cycle, increasing the susceptibility to downturns in other economies, impacting on economic growth, employment and therefore distribution of Y- Long-term goals to create a more competitive and successful economy may have short-term impacts from structural changes which have the most negative effects on low Y earnersChanges in the labour market- The past decade has seen the increase in casual or part-time work rather than full-time jobs which creates the problem of underemployment. those from the US, Britain and South Africa (more developed countries.
Common topics in this essay:
Pay Equal,
UnN Medicare,
Industrial Awards,
Globalisation Integration,
Aboriginal Australians,
Tax GST,
,
UnN Australia,
Long-term UnN,
South Africa,
low earners,
government benefits,
labour market,
government spending,
effects low earners,
couples dependent,
single people,
dependent children,
structural changes,
helps redistribute,
changes labour market,
distribution income wealth,
couples dependent children,
wealth economy,
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Acceptance Essays
