Income Differences In Australia

In Australia, there are numerous factors which influence the income earned from various employment options. Real wages is a measure of a person's income once the growth in prices of goods and services is removed whilst nominal wages are the payments given to workers for supplying their labour in the production process not adjusted for inflation. Inflation is the sustained increases in the general level of prices of goods and services in the economy over one year. Causes of income differences are age, gender inequality, ethnicity, different occupations and different positions in the same occupation. Consequences of these income differences include the importance of education and training, labour shortage in certain occupations and unequal income

Recently, wage levels have decreased because Australia has seen a decrease in the level of productivity. The inflation rate in Australia has remained steady, between the RBA’s preferred rate of 2-3%. As of 2014, Australia’s inflation rate was 2.25%. Men however, earn approximately $500 more than females, which is due to discrimination in the work force.

The first cause of income difference is age. People aged between 35-44 earn the most money per week, averaging around $1600 per week, due to their experience and knowledge of their job. People aged 19-24 earn around $900 per week because they have little experience and limited tertiary education. People aged 60 and over earn around $1000 per week, with the main source of income being pension payments and superannuation.

DIfferent pay levels within different occupations is the next cause of income differences in Australia. This is mainly due to the importance of education and training. For example, a person who has undergone tertiary education will earn more money than someone who has left school in yr 10, because they will possess greater knowledge and skills. Also, jobs with a shortage in labour supply will see them earn a high income. For example, someone who works as an accountant will likely earn less money than someone working in the mines in rural Western Australia. This is the case because businesses understand

Men on average earn around $500 more than women per week, according to an ABS study in 2013. This is impacted largely on the family responsibilities that women are likely to undertake in life. Employers do not want to pay women a higher income, because productivity can decrease when they leave the workforce for their period. Also, discrimination is very prevalent amongst Australian employers. Women who have the same qualifications and experience as men still earn lower incomes than their male counterparts, due to employers being discriminative. In addition, women are seen to have a ‘glass-ceiling’ in their employment opportunities. They have the qualifications and skills, but reach a point where it's difficult to gain a high paying