Regional Income Inequality in a Developed Nation: A Cross-Sectional Study of Australian Sub-State Regions

Abstract

This paper focuses on patterns of income inequality among Australian sub-state regions for the census years 1976, 1981, and 1986. Using single-equation econometric techniques, its principal objective is to explain these patterns. Like a number of previous studies, we hypothesize that the level of sub-state regional inequality is a function of the level of regional development We also consider the importance of a number of other factors to regional income inequality, including: labor market and demographic and geographic characteristics. Our results indicate that these factors do impact the level of Australian sub-state regional inequality of incomes.