Cookies?
Library Header Image
LSE Research Online LSE Library Services

Rising top-income persistence in Australia: evidence from income tax data

Hérault, Nicolas, Hyslop, Dean, Jenkins, Stephen P. ORCID: 0000-0002-8305-9774 and Wilkins, Roger (2021) Rising top-income persistence in Australia: evidence from income tax data. International Inequalities Institute Working Papers (69). International Inequalities Institute, London School of Economics and Political Science, London, UK.

[img] Text (Rising-top-income-persistance-australia-working-paper-69) - Published Version
Download (2MB)

Abstract

We use a new Australian longitudinal income tax dataset, Alife, covering 1991–2017, to examine levels and trends in the persistence in top-income group membership, focussing on the top 1%. We summarize persistence in multiple ways, documenting levels and trends in rates of remaining in top-income groups; re-entry to the top; the income changes associated with top-income transitions; and we also compare top-income persistence rates for annual and ‘permanent’ incomes. Regardless of the perspective taken, top-income persistence increased markedly over the period, with most of the increase occurring in the mid-2000s and early 2010s. In the mid- to late2010s, Australian top-income persistence rates appear to have been near the top of the range of tax-data estimates for other countries. Using univariate breakdowns and multivariate regression, we show that the rise in top-income persistence in Australia was experienced by many population subgroups.

Item Type: Monograph (Working Paper)
Official URL: https://www.lse.ac.uk/International-Inequalities/P...
Additional Information: © 2021 The Authors
Divisions: Social Policy
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor
JEL classification: D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions
I - Health, Education, and Welfare > I3 - Welfare and Poverty > I31 - General Welfare; Basic Needs; Living Standards; Quality of Life; Happiness
C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology; Computer Programs > C81 - Methodology for Collecting, Estimating, and Organizing Microeconomic Data
Date Deposited: 24 Sep 2021 08:12
Last Modified: 24 Sep 2021 08:12
URI: http://eprints.lse.ac.uk/id/eprint/112125

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics