Index
The Labour Force - 1
Birth And Death Rates - 2
Migration And Age Distribution - 3
Other Factors Effecting The Labour Force - 4
Attitudes To Work And Leisure- 5
Australia's Population - Statistical Analysis - 6
Population Centres In Australia - 7
Trends In Employment - 8
The Supply And Demand For Labour - 9
Geographical Mobility And Taxation - 10
The Unemployment Rate - 11
Defining ''Employment'' - 12
The Labour Force Reviewed - 13
The Hidden Unemployed - 14
Changes In Employment And Unemployment - 15
Economic Growth And Employment - 16
The Demand For Labour - 17
The Impact Of The Global Economy - 18
Legal Requirements - 19
The ''Casualisation'' Of The Labour Force - 20
Types of Unemployment - 21
Types of Unemployment (continued) - 22
The Labour Force Participation Rate - 23
The LFPR (continued) - 24
The Effects Of Unemployment - 25
Income Inequality - 26
The Distribution Of Household Income - 27
Income Distribution In Australia - 28
Income Distribution (continued) - 29
Income Distribution (continued) - 30
Changes In The Workforce - 31
Net Overseas Migration - 32
Sources Of Migrant Intake - 33
Changes In The Workforce (continued) - 34
Youth Unemployment - 35
''Mature'' Unemployment - 36
Supply Side Economics - 37
Revision Exercise - 1 - 38
Revision Exercise - 2 - 39

The Distribution of Household Income - 27

Income distribution can be shown graphically using a Lorenz curve. The cumulative frequency of income received is compared with the cumulative frequency of income recipients. If everyone in Australia received the same income, then the first ten per cent of the Australian population would receive 10% of total national income; the next ten per cent of the population would receive the next 10% of national income and so on. Perfect equality of income is shown as the 45 degree line on the graph to your left.

The further the actual distribution of income is concentrated in the hands of the rich, the further the actual curve is from the 45 degree line. The dark line represents the initial distribution of income. Can you see that half the population only receives less than 30% of the total national income? (Hint : find 50 on the x axis, and find where this intersects with the darker Lorenz curve. Now move to your left until you reach the y axis.)

In the example shown, the distribution of income has become more unequal over time. Analyse the new, lighter Lorenz curve. Now half the population only receives about 20% of the national income. This means of course, that the richest 50% of the population receive 80% of all the national income. The gap between the rich and the poor has clearly widened. Who are the most disadvantaged groups in Australia today?