A Comparison of Income and Expenditure Inequality Estimates: The Australian Evidence, 1975-76 to 1993-94

Using Australian unit record data this paper compares income and expenditure inequalities over the period 1975-76 to 1993-94. The study finds inconsistencies between the two inequality movements over much of this period. We also observe differences in the nature of income and consumption disparities. Both approaches show that the 'within group' inequality dominates the 'between group' component when the population is divided into household types. The inequality estimates are sensitive to the equivalence scale used as the household size deflator but not to the cost of living index used as the price deflator.