Abstract

There are wide divergences in the mean incomes of males and females in Australia. In addition income is related to age, education and work force participation. This paper uses decompositions of Theil and Gini income‐inequality coefficients to examine the extent to which inequality of earned income may be explained by these various factors. It is suggested that education and age, singly and jointly, explain a major part of inequality. Having allowed for these factors, sex appears to have a limited residual importance.

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