Modelling Potential Impact of Improved Survival of Indigenous Australians on Work-Life Labour Income Gap Between Indigenous and Average Australians

This study compares work-life labour income of Indigenous and average Australians and assesses potential impact of bridging mortality gaps on their work-life earning gaps using a life-table model which took account of the survival, employment and income trajectories from 25 to 64 years. Age-specific employment and average annual income data were derived from the 2006 Census for three educational groups: certificate or higher levels of education, Year 12, and less than Year 12 education. Results show that depending on educational qualifications, work-life labour income of Indigenous people is likely to be just over two-fifths to about two-thirds of work-life labour income of average Australians. If Indigenous Australians were to have the same level of survival as to average Australians, the work-life labour income gap would narrow by about four to seven percentage points. Bridging the adult mortality gap alone has only a small impact on bridging economic gaps persisting between Indigenous and other Australians.