The gap between Indigenous and non-Indigenous incomes has widened, and increasing access to education could help reduce it according to a new report
•Interactive map: Indigenous pay gap by region
The gap between Indigenous and non-Indigenous incomes has widened, according to a new analysis of census data.
Using data from the 2006 and 2011 censuses, Dr Nicholas Biddle from the Australian National University has analysed income differences for Indigenous and non-Indigenous Australians.
Adjusting for inflation, Indigenous Australians' average disposable income was $400 per week in 2006. In 2011, this jumped to $488, a 22% increase. Despite this rapid increase, the income for non-Indigenous Australians increased by 25.6% over the same period.
While Indigenous Australians are earning more, the difference in pay has actually widened. In 2006, the average disposable income for an Indigenous Australian was 72% that of a non-Indigenous Australian. In 2011, it fell to 70%.
Biddle says this disparity is due to three things: an increase in the percentage of Indigenous Australians in the lowest income bracket, increases in the percentage of both Indigenous and non-Indigenous Australians in the highest income bracket (1% to 2.2% and 3.9% to 6.9%, respectively) and a massive increase in income for people in the highest bracket.
The report also breaks down the results by region, with a large amount of variation between areas. You can see the data in an interactive map here. The lower pay gaps between Indigenous and non-Indigenous Australians are concentrated in the south-east of Australia, whereas in central and north-western Australia the gaps tend to be higher.
Education is highlighted as a strong determinant of higher incomes. Income was higher with a higher level of education for both Indigenous and non-Indigenous Australians. Indigenous males who had completed a degree had an income in 2011 that was, on average, 2.91 times higher than Indigenous males who hadn't finished Year 12 and had no qualifications.
Indeed, the results of the analysis of education prompted the author to note: "Reducing the barriers to education participation and completion will not completely eliminate the gap in socioeconomic outcomes between Indigenous and non-Indigenous Australians (especially males). However, it is likely that it will make a significant difference."