Melbourne Institute of Applied Economic and Social Research - Research Publications
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ItemCorrelates of hair cortisol concentrations in disadvantaged young children(WILEY, 2019-02)Children from highly disadvantaged families tend to experience worse health, educational, and job outcomes than less disadvantaged peers. However, the mechanisms underlying these relationships remain to be explicated. In particular, few studies have investigated the relationships between the psychosocial influences that children are exposed to early in life and longer term cortisol output. This study aims to contribute to the literature by exploring how disadvantaged young children's experiences of family adversity, and parenting and family functioning, are related to their long-term cortisol levels. A sample of 60 children (26 males, mean = 4.25 years, SD = 1.68) and their mothers (mean = 34.18 years, SD = 7.11) from a low-income population took part in a single assessment. Mothers completed questionnaires on the family environment, parenting practices, and child behaviour. Children provided a hair sample for cortisol assay and anthropometric measures. A parsimonious multivariate regression model (including potential predictors identified by a selection algorithm) was used to investigate the correlates of hair cortisol concentration (HCC) in children. Higher levels of social exclusion, being male, and younger age were each associated with higher HCC. Maternal nurturing and emotion coaching were associated with lower HCC. Findings suggest that chronic stress may underlie relationships between adversity and its long-term effects and that HCC offers a promising method for examining chronic stress in children and evaluating interventions by which it can be ameliorated.
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ItemHave tax-transfer policy reforms increased inequality?(Melbourne Institute of Applied Economic and Social Research, 2020-02-01)Australia has experienced 28 years of uninterrupted annual economic growth. Since reaching a peak of 11 per cent in 1993, the unemployment rate declined sharply and has been below 6 per cent for most of the period since mid-2003. Yet despite unprecedented economic expansion in Australia since the mid-1990s, fiscal reform has created a less progressive tax-transfer system, contributing to rising income inequality.
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ItemDriving Precision Policy Responses to Child Health and Developmental Inequities(Mary Ann Liebert, 2019-01-01)The growing evidence base on the extent of and opportunities to reduce inequities in children's health and development still lacks the specificity to inform clear policy decisions. A new phase of research is needed that builds on contemporary directions in precision medicine to develop precision policy making; with the aim to redress child inequities. This would include identifying effective interventions and their ideal time point(s), duration, and intensity to maximize impact. Drawing on existing data sources and innovations in epidemiology and biostatistics would be key. The economic and social gains that could be achieved from reducing child inequities are immense.
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ItemChildcare Use and Its Role in Indigenous Child Development: Evidence from the Longitudinal Study of Indigenous Children in Australia(Wiley, 2019-03-01)We investigate patterns of childcare use and its influence on the cognitive development of Indigenous children. The influence of childcare on Indigenous children's cognitive outcomes is less well understood than for non-Indigenous children due to a lack of appropriate data. We focus on a cohort of Indigenous children in Australia who have been followed from infancy and for whom rich information on childcare use and cognitive outcomes is observed. Compared to Indigenous children who never participated in childcare, Indigenous children who participated in childcare performed better on several early cognitive outcomes. Using regression and propensity score matching, we show that this difference is driven by selection into childcare, with children from more advantaged families being more likely to attend formal childcare. However, matching analysis results suggest that relatively disadvantaged children might benefit more from attending childcare, as indicated by the positive estimated effects found for those who never attended childcare.
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ItemModelling income data using two extensions of the exponential distribution(ELSEVIER SCIENCE BV, 2016-11-01)In this paper we propose two extensions of the Exponential model to describe income distributions. The Exponential ArcTan (EAT) and the composite EAT–Lognormal models discussed in this paper preserve key properties of the Exponential model including its capacity to model distributions with zero incomes. This is an important feature as the presence of zeros conditions the modelling of income distributions as it rules out the possibility of using many parametric models commonly used in the literature. Many researchers opt for excluding the zeros from the analysis, however, this may not be a sensible approach especially when the number of zeros is large or if one is interested in accurately describing the lower part of the distribution. We apply the EAT and the EAT–Lognormal models to study the distribution of incomes in Australia for the period 2001–2012. We find that these models in general outperform the Gamma and Exponential models while preserving the capacity of the latter to model zeros.
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ItemOn the Measurement of Intermediate Inequality: A Dominance Criterion for a Ray-Invariant Notion(Emerald Publishing, 2014-09-30)This paper introduces a unit-consistent Lorenz dominance criterion that allows ranking income distributions according to centrist measures a` la Seidl and Pfingsten (1997). In doing so, it defines α-Lorenz curves that generalize the absolute Lorenz curve. These curves allow implementing unanimous rankings for a broad set of centrist inequality notions, whereas they become closer and closer to the absolute curve when α approaches equity. In addition, this paper provides an empirical illustration of these tools using Australian income data. The results suggest that despite the reduction of relative inequality for Australian-born people between 1999 and 2003, their inequality increased for most centrist value judgments.
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ItemRecent Trends in Income Redistribution in Australia: Can Changes in the Tax-Benefit System Account for the Decline in Redistribution?(Wiley, 2015-03-01)We examine trends in the redistributive impact of the tax-benefit system in Australia between 1994 and 2009 using a framework that allows us to separate the contributions of taxes, benefits, and taxes and benefits combined. Furthermore, we identify the effect of tax-benefit policy reforms on income redistribution over the period. We find that after reaching a peak value in the late 1990s, the redistributive effect of taxes and benefits declined sharply. Although reforms to the tax-benefit system contributed to the decline in redistribution, their contribution was limited compared to the role played by the changes in market income distribution.
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ItemUnderstanding Changes in the Distribution and Redistribution of Income: A Unifying Decomposition Framework(Wiley, 2016-06)In recent decades income inequality has increased in many developed countries but the role of tax and transfer reforms is often poorly understood. We propose a new method allowing for the decomposition of historical changes in income distribution and redistribution measures into: (i) the immediate effect of tax-transfer policy reforms in the absence of behavioral responses; (ii) the effect of labor supply responses induced by these reforms; and (iii) a third component allowing us to explore the effect of changes in the distribution of a wide range of determinants, including the effect of employment changes not induced by policy reforms. The application of the decomposition to Australia reveals that the direct effect of tax-transfer policy reforms accounts for half of the observed increase in income inequality between 1999 and 2008, while the increased dispersion of wages and capital incomes also played an important role.