, Volume 29, Issue 2, pp 157-171

Modelling potential impact of improved survival of Indigenous Australians on work-life labour income gap between Indigenous and average Australians

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Abstract

This study compares the work-life labour income of Indigenous and average Australians and assesses the potential effect of bridging the mortality gaps on their work-life earnings using a life-table model which took account of the survival, employment and income trajectories from 25 to 64 years. Age-specific employment and average annual income data were derived from the 2006 Census for three educational groups: incomplete secondary, completed secondary, and higher levels of education. Results show that depending on educational qualifications, the work-life labour income of Indigenous people is likely to be around two-fifths to two-thirds of the work-life labour income of average Australians. If Indigenous Australians were to have the same level of survival as average Australians, the work-life labour income gap would narrow by about 4–7 % points. Bridging the adult mortality gap alone has only a small effect on bridging economic gaps persisting between Indigenous and other Australians.