The rich are getting richer
Australia’s top earners have increased their share of income more than three fold over the last three decades, according to new research from The Australian National University (ANU).
The study, conducted by ANU economist, Professor Andrew Leigh from the Research School of Economics, in conjunction with Oxford University’s Sir Tony Atkinson, used taxation statistics to estimate the share of income held by the rich between 1921 and 2007.
The researchers also found that the income share of the country’s best paid workers was rising at a rate far outpacing ordinary workers.
“The income share of the richest 1% (those earning more than $197,000 in 2007) declined from 1921 to 1980, and has risen since then. In 1980 the top 1% had five times their share of household income. Now, the same group has 10 times their share of household income.
“This pattern is even starker among the top 0.1% (those earning more than $693,000 in 2007) whose share of household income has more than tripled since 1980,” said Professor Leigh.
Using newly available taxation statistics and chief executive officer pay data, the study updates results that were first published in 2003.
“Several factors drove the increase in inequality. These include internationalisation of labour markets for executives, technological change, and lower marginal tax rates,” he added.
A copy of the results is available at http://andrewleigh.org
