tag:theconversation.com,2011:/id/topics/hilda-774/articlesHILDA – The Conversation2024-02-21T19:12:53Ztag:theconversation.com,2011:article/2230912024-02-21T19:12:53Z2024-02-21T19:12:53ZWorking from home is producing economic benefits return-to-office rules would quash<figure><img src="https://images.theconversation.com/files/576794/original/file-20240220-28-rkdhd8.png?ixlib=rb-1.1.0&rect=60%2C198%2C1744%2C868&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>More of us have been in paid work this past year than ever before. A big part of that is because more of us have been able to work from home than ever before.</p>
<p>The proportion of Australians in paid work climbed above <a href="https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release">64%</a> in May last year, and has stayed there since. At the same time, unemployment has hovered around a half-century low of <a href="https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release">4%</a>.</p>
<p>In April last year, female unemployment fell to what is almost certainly an all-time low of <a href="https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release">3.3%</a>.</p>
<p>It’s working from home – actually, working from anywhere – that has been the game-changer, as the most enduring change to the way we work to have come out of the pandemic.</p>
<h2>The jump in working from home</h2>
<p>Before the pandemic, in 2019, the share of the workforce who usually work at least partly from home was 25%. Three years on in 2022, it was 36%. </p>
<p>These numbers from the latest <a href="https://theconversation.com/hilda-data-show-womens-job-prospects-improving-relative-to-mens-and-the-covid-changes-might-have-helped-222897">Household, Income and Labour Dynamics in Australia</a> (HILDA) Survey show there’s also been a shift in who’s working from home.</p>
<p>Before the pandemic, a greater share of men than women worked from home. Now it’s a greater share of women.</p>
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<p>Among both women and men, the biggest jump has been among parents with young children.</p>
<p>The proportion of mothers with children under five working at least partly from home has leapt from 31% to 43%.</p>
<p>The working-from-home rate for fathers with children under five has jumped from 29% to 39%.</p>
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<h2>Which workers, which jobs?</h2>
<p>Before the pandemic, managers and professionals were the workers most likely to work from home. They still are, with up to 60% dialling in from the home office for at least part of their work week.</p>
<p>But it’s clerical and administrative workers – occupations that are about three-quarters female – who had the biggest jump in working from home. Their pre-pandemic rate of 18% has soared to 42%.</p>
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<p>In terms of industries, finance and insurance led the pack before the pandemic and still do, with rates doubling to 85%. </p>
<p>Working from home is now also the norm in information media and telecommunications (74%) and public administration and safety (72%).</p>
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<p>In the traditionally male industry of construction, women’s working-from-home rates have soared from 34% to 45%. </p>
<p>It’s well above the men’s rate of 24%, which is largely unchanged. </p>
<p>While this reflects the different types of jobs that men and women do in construction, it also suggests working from home is a way to boost women’s involvement, even in this industry.</p>
<h2>More workers, better-matched</h2>
<p>The benefit of working from home for the economy has been fewer obstacles getting in the way of matching jobseekers to employers. Distance and location are no longer the deal-breakers they were.</p>
<p>Better job-matching means <a href="https://images.theconversation.com/files/576896/original/file-20240220-30-ca0a0r.PNG">less unemployment</a>, and the heightened prospect of finding a good job match encourages jobseekers who in earlier times might have given up.</p>
<p>In finance and insurance – the industry with the biggest and fastest-growing rate of working from home – the proportion of jobs that were vacant fell from 2.5% before the pandemic to just <a href="https://www.abs.gov.au/statistics/labour/jobs/job-vacancies-australia/latest-release#data-downloads">1.7%</a> by the end of 2023.</p>
<h2>Return-to-office mandates would set us back</h2>
<p>Making workers <a href="https://theconversation.com/can-australian-employers-stop-you-working-from-home-heres-what-the-law-says-211339">return to the office</a> for jobs that can be effectively done from home would unravel the economic benefits that have been achieved.</p>
<p>Fewer people, especially women and parents with young children, would put themselves forward for work. The pool of skills that employers are looking for would shrink. And job-matching in the labour market becomes less efficient.</p>
<p>The result would be more Australians unemployed, and more Australians dropping out of the paid workforce, than if we had continued to embrace working from home. </p>
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Read more:
<a href="https://theconversation.com/can-employers-stop-you-working-from-home-heres-what-the-law-says-211339">Can employers stop you working from home? Here's what the law says</a>
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<p>Working from home still comes with <a href="https://theconversation.com/hilda-finds-working-from-home-boosts-womens-job-satisfaction-more-than-mens-and-that-has-a-downside-195641">challenges</a>. Workers who are less visible in the office are more likely to be <a href="https://hbr.org/2022/10/what-is-proximity-bias-and-how-can-managers-prevent-it">overlooked</a>.</p>
<p>But it has a wider economic benefit we have a chance to hold on to.</p>
<p>The extraordinary transformation of our labour market means it shouldn’t be seen as a “favour” to workers, but as a favour to us all.</p><img src="https://counter.theconversation.com/content/223091/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Leonora Risse receives research funding from the Trawalla Foundation and the Women's Leadership Institute Australia. She is a member of the Economic Society of Australia and the Women's in Economics Network. She declares that she works partly from home, for family care-giving reasons.</span></em></p>Working from home is bringing more of us into the workforce and better matching us to jobs. It shouldn’t be seen as a favour to us, but as a favour to the economy.Leonora Risse, Associate Professor in Economics, University of CanberraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2228972024-02-11T19:07:44Z2024-02-11T19:07:44ZHILDA data show women’s job prospects improving relative to men’s, and the COVID changes might have helped<figure><img src="https://images.theconversation.com/files/574298/original/file-20240208-30-m3prdb.png?ixlib=rb-1.1.0&rect=215%2C257%2C3550%2C1856&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/business-people-shaking-hands-finishing-meeting-605124179">Shutterstock</a></span></figcaption></figure><p>The latest <a href="https://melbourneinstitute.unimelb.edu.au/hilda/publications/hilda-statistical-reports">HILDA survey</a> shows Australia’s gender gap in employment continuing to close, with progress beginning on the earnings gap. </p>
<p>Remarkably, the progress has continued notwithstanding the disruptions caused by COVID; there are indications they may even have helped.</p>
<p>Funded by the Australian government and managed by the Melbourne Institute, the Household, Income and Labour Dynamics in Australia (HILDA) survey is one of Australia’s most valuable social research tools.</p>
<p>HILDA examined the lives of 14,000 Australians in 2001 and has kept coming back each year to discover what has changed. By surveying their children as well, and in future surveying their grandchildren, it is building up a long-term picture of how the lives of Australians are changing.</p>
<h2>Employment lifting</h2>
<p>The full span of the surveys through to the results for 2021 released this morning shows shows the proportion of women aged 18 to 64 in paid employment climbed from 64.3% in 2001 to 74.1% in 2019 before dipping during COVID and then bouncing back.</p>
<p>Separate labour force figures collected by the Bureau of Statistics suggest it might be as high as <a href="https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia-detailed/dec-2023#all-data-downloads">76%</a> by now, indicating that COVID may have merely dented rather than turned back progress.</p>
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<p>For men of that age, the proportion in paid employment has changed little during those two decades, fluctuating between 80% and 84%, allowing the gap in employment between men and women to narrow eight percentage points.</p>
<p>Older women aged 65 to 69 are also much more likely to be employed. Most of the gain has taken place since 2009 when one in ten women of that age were in paid employment, a figure that has since climbed to one in four, not too far off the one in three men of that age employed.</p>
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<p>Much of the increase would be due to the phased increase in the female pension age between <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1314/SuperChron">1995 and 2004</a> and the further increase in both the male and female pension age between <a href="https://ministers.treasury.gov.au/ministers/wayne-swan-2007/media-releases/secure-and-sustainable-pension-reform-age-pension-age">2017 and 2023</a>. Broader social and economic changes such as the increase in two-earner couples will have also played a role.</p>
<p>While men remain well ahead in full-time employment, that gap is narrowing too. The proportion of women aged 18 to 64 employed full-time has climbed from around 35% to around 40% while the proportion for men has stayed close to 70%.</p>
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<p><a href="https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0009/2874177/HILDA-report_Low-Res_10.10.18.pdf">Previous HILDA reports</a> have shown the arrival of children remains an important driver of divergence in the labour market experiences of men and women.</p>
<p>The arrival of a couple’s first child sees hours of paid work of the mother plummet and in many cases not recover for more than a decade. It has almost no effect on the paid working time of fathers. </p>
<p>Time spent on housework and child care, by contrast, rises dramatically for mothers and actually falls slightly for fathers.</p>
<p>If the gender gap in employment is to be eliminated, it is clear couples with children will need to share the load more equally. </p>
<h2>Wages lifting</h2>
<p>Male and female earnings have been converging slower than male and female employment, but the pace has picked up.</p>
<p>In 2001, women employed full-time earned on average 79% of what men earned. As recently as 2016, they still earned only 78% of what men earned. </p>
<p>But, since then, their earnings relative to male earnings have shot up, hitting 86% in 2021. </p>
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<p>The gap in earnings of all employees – full-time and part-time – is greater because women are more likely to be employed part-time, but growth in the number of women employed full-time means this gap is closing faster. Average female earnings have climbed from 66% of male earnings in 2001 to 75% in 2021.</p>
<h2>How COVID might have helped</h2>
<p>While the pandemic seemed to hurt women’s employment prospects <a href="https://grattan.edu.au/report/womens-work/">more</a> than men’s, longer term it seems to be improving the relative position of women.</p>
<p>HILDA shows the proportion of employees working from home in 2020 and 2021 has increased substantially. </p>
<p>The proportion working any hours at home climbed from 25.1% in 2019 to 37.3% in 2021. The proportion working only at home climbed from 3.5% to 17.7%. </p>
<p>There has also been a sizeable rise in the proportion of employees reporting an entitlement to work from home, from 35% in 2019 to 45%. </p>
<p>While the increases were greatest in the regions that experienced extensive lockdowns – Victoria, NSW and the ACT – working from home increased in almost all parts of Australia.</p>
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Read more:
<a href="https://theconversation.com/hilda-finds-working-from-home-boosts-womens-job-satisfaction-more-than-mens-and-that-has-a-downside-195641">HILDA finds working from home boosts women's job satisfaction more than men's, and that has a downside</a>
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<p>HILDA shows women have been more likely to work from home than men since COVID, even after accounting for differences in the occupations and industries in which they work.</p>
<p>This is probably because of an increase in the number and types of jobs that can be worked at home by mothers with caring responsibilities. </p>
<p>But this latest 2021 HILDA survey also reveals another gender gap in the labour market: women are more likely to work while unwell, including working at the workplace while unwell. </p>
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<p>There are health risks from working from home while unwell and also career risks from working at home. Being physically present in the workplace is likely to assist with <a href="https://theconversation.com/hilda-finds-working-from-home-boosts-womens-job-satisfaction-more-than-mens-and-that-has-a-downside-195641">career advancement</a>.</p>
<p>“Out of sight” can mean “out of mind” when it comes to promotions.</p>
<h2>Some small steps on sharing the caring</h2>
<p>Also providing a glimmer of hope for closing the gender gaps in the labour market is that, among parents with children, we’ve seen an increase in the time men have been spending on household chores and looking after the children. </p>
<p>The improvement accelerated slightly in 2020 and 2021, via both an increase in the hours worked on domestic chores by men and a slight decrease for women. </p>
<p>But there is a long way to go. In 2021, mothers of dependent children were still spending 75% more time on unpaid housework and child care than their male partners.</p>
<p>The mothers spent <a href="https://melbourneinstitute.unimelb.edu.au/hilda/publications/hilda-statistical-reports">53 hours</a> per week. Their male partners spent 30 hours.</p>
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Read more:
<a href="https://theconversation.com/hilda-survey-at-a-glance-7-charts-reveal-were-smoking-less-taking-more-drugs-and-still-binge-drinking-223004">HILDA survey at a glance: 7 charts reveal we're smoking less, taking more drugs and still binge drinking</a>
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<img src="https://counter.theconversation.com/content/222897/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Roger Wilkins receives funding from the Australian Research Council. </span></em></p>The gender wage and employment gaps are narrowing, and working from home is helping drive the change.Roger Wilkins, Professorial Fellow and Deputy Director (Research), HILDA Survey, Melbourne Institute of Applied Economic and Social Research, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2050152023-05-07T20:17:51Z2023-05-07T20:17:51ZThe case for boosting JobSeeker for all: younger people report greater financial hardship<figure><img src="https://images.theconversation.com/files/524557/original/file-20230505-27-um5ftm.jpg?ixlib=rb-1.1.0&rect=0%2C336%2C4982%2C2450&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>In response to calls to raise the JobSeeker payment, the Albanese government is <a href="https://theconversation.com/presented-with-a-jobseeker-finding-too-clear-to-ignore-he-changed-the-subject-how-jim-chalmers-is-shaping-the-budget-204754">expected</a> to announce an increase in Tuesday’s budget only be for recipients aged 55 and over.</p>
<p>Doing so will fuel the familiar generational debate about comparative levels of hardship experienced by older and younger Australians. </p>
<p>JobSeeker’s current single rate is $49.51 a day, about 65% of the age pension and 18.5% of average full-time earnings. Last month, the government’s own Economic Inclusion Advisory Committee recommended it be raised to 90% of the age pension. </p>
<p>This age targeting is reportedly justified on the basis that older recipients are more likely to be long-term unemployed, and majority female. </p>
<p>But are younger recipients less needy? Our research suggests their need may well be greater, reporting far higher levels of hardship than older Australians, even when depending on JobSeeker.</p>
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Read more:
<a href="https://theconversation.com/boosting-jobseeker-is-the-most-effective-way-to-tackle-poverty-what-the-treasurers-committee-told-him-204045">Boosting JobSeeker is the most effective way to tackle poverty: what the treasurer's committee told him</a>
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<h2>Measuring financial hardship</h2>
<p>Our results are drawn from the Household, Income and Labour Dynamics in Australia survey – better known as the <a href="https://melbourneinstitute.unimelb.edu.au/hilda">HILDA survey</a> – which each year since 2001 has polled a representative sample of about 18,000 Australians on many aspects of their lives.</p>
<p>Our first graph shows average financial hardship by age.</p>
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<p>We compiled this index from answers given by HILDA participants to seven indicators of their material hardship over the previous nine months. These were, due to a shortage of money: </p>
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<li>could not pay electricity gas or telephone bills on time</li>
<li>could not pay the mortgage or rent on time</li>
<li>pawned or sold something</li>
<li>went without meals</li>
<li>was unable to heat home</li>
<li>asked for financial help from friends or family</li>
<li>asked for help from welfare or community organisations.</li>
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<p>About 22% of those aged 20-80 reported at least one hardship, with the average hardship of those in their 20s being 2.9 times more than those aged 55 to 69.</p>
<p>The next graph shows the constituent elements of the composite measure.</p>
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<p>While the responses to “asking for help” – with young people presumably asking parents first – do seem to skew the results, five of the other six measures follow the same pattern. (The exception is “unable to heat home”, where there’s no significant age trend.)</p>
<p>One reason for this distinct pattern is <a href="https://doi.org/10.1111/j.1475-4991.2011.00470.x">home ownership and wealth accrual</a> over time. Young people are typically more financially stressed because they have had less time to accumulate liquid assets, such as cash and bank deposits. </p>
<p>It’s also possible that younger people are more likely to admit to hardship, though <a href="https://doi.org/10.1111/j.1475-4991.2011.00470.x">our research suggests</a> this is not a significant factor. </p>
<h2>What about JobSeeker recipients?</h2>
<p>The next graph shows financial stress among JobSeeker recipients by age before and during 2020. It also shows the effect of higher payments in 2020, when the federal government doubled the JobSeeker rate for six months (known as the Coronavirus Supplement).</p>
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<p>Thanks to those payments, financial stress among the young fell to its lowest level in at least two decades. But that still meant, on average, those younger than 55 were 2.5 times more likely to report being financially stressed than those 55 and older. </p>
<p>The Coronavirus Supplement experiment in 2020 taught us that a higher JobSeeker payment rate can make a meaningful difference to the financial wellbeing of all Australians, both young and old.</p>
<p>We will find out shortly what the federal government has learned from this policy lesson.</p>
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Read more:
<a href="https://theconversation.com/presented-with-a-jobseeker-finding-too-clear-to-ignore-he-changed-the-subject-how-jim-chalmers-is-shaping-the-budget-204754">Presented with a JobSeeker finding too clear to ignore, he changed the subject: how Jim Chalmers is shaping the budget</a>
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<img src="https://counter.theconversation.com/content/205015/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Should people aged 55 and over get a targeted boost to their JobSeeker payments? Our research suggests the need among young Australians may well be greater.Peter Siminski, Professor of Economics, University of Technology SydneyGianni La Cava, Adjunct Fellow in Economics, Macquarie UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1997712023-02-13T19:12:20Z2023-02-13T19:12:20ZSuccess in life is tied to parental education. That’s why we need to track intergenerational school performance<figure><img src="https://images.theconversation.com/files/509678/original/file-20230213-515-wswk59.jpg?ixlib=rb-1.1.0&rect=40%2C478%2C4500%2C2250&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>The notion of the “fair go” is meant to be central to Australia’s national ethos.</p>
<p>It’s not easy to define, but most of us would agree it means the chance to reach your full potential, regardless of your background. This doesn’t necessarily mean equality, but it does imply social mobility, where you can do better than your parents based on merit. </p>
<p>Education is a major driver of social mobility, with research showing educational attainment explains up to 30% of the transmission of economic advantage between parents and children.</p>
<p>But a <a href="https://www.pc.gov.au/inquiries/completed/school-agreement/report/school-agreement.pdf">Productivity Commission report</a> published last month shows the education system is not doing well in correcting for the disadvantage students face in the classroom. </p>
<p>For example, Year 3 students whose parents did not finish secondary school are an average of 1.3 years behind in numeracy, compared with those whose parents have a bachelors’ degree or higher. By the time these students reach Year 9 this gap widens to almost four years.</p>
<p>The Productivity Commission report was commissioned under the Morrison government to review the 2018 National School Reform Agreement between the federal and state governments to improve student outcomes. The deal came with A$319 billion in extra funding. But after five years, the report concludes, this has so far failed to make any difference in results. </p>
<p>Given the magnitude of the funding, this is troubling on its own. The broader implications for social mobility in Australia are even more concerning. </p>
<p>The commission’s report highlights the need for better data on educational attainment and social mobility. This will enable better analysis of the links between the two – and ultimately more effective education policy. </p>
<p>If policymakers don’t know what works, especially for students from disadvantaged backgrounds, they will spend money on the wrong things.</p>
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Read more:
<a href="https://theconversation.com/a-degree-promises-a-better-life-but-social-mobility-has-a-downside-too-150535">A degree promises a better life but social mobility has a downside too</a>
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<h2>The importance of longitudinal data</h2>
<p>As children from less educated families perform significantly worse than the children of the more educated, it is far less likely their relative economic situation in adulthood will exceed that of their parents.</p>
<p>Unravelling the links between education and social mobility requires longitudinal data – tracking the same individuals over decades.</p>
<p>The best example of longitudinal data in Australia is the Household, Income and Labour Dynamics in Australia (HILDA) survey, conducted by the Melbourne Institute at the University of Melbourne. </p>
<p>Since 2001, HILDA has tracked a nationally representative sample of about 18,000 Australians, asking them about things such as income, employment, health and wellbeing. By surveying the same people, researchers can use this data to understand influences on people’s lives over time.</p>
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Read more:
<a href="https://theconversation.com/hilda-survey-reveals-striking-gender-and-age-divide-in-financial-literacy-test-yourself-with-this-quiz-100451">HILDA Survey reveals striking gender and age divide in financial literacy. Test yourself with this quiz</a>
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<p>The Australian Taxation Office’s <a href="https://alife-research.app/info/overview">ALife dataset</a>, an anonymised sample of 10% of all Australian taxpayers also provides significant insight into intergenerational income mobility.</p>
<p>By following individuals over decades, researchers can observe and compare the labour market outcomes of parents with those of their children as they grow into adults.</p>
<figure class="align-center ">
<img alt="By Year 3, Australian students whose parents did not finish secondary school are 1.3 years behind in numeracy compared with those whose parents have Bachelors' degree or higher." src="https://images.theconversation.com/files/509685/original/file-20230213-28-jdrqo7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/509685/original/file-20230213-28-jdrqo7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=347&fit=crop&dpr=1 600w, https://images.theconversation.com/files/509685/original/file-20230213-28-jdrqo7.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=347&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/509685/original/file-20230213-28-jdrqo7.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=347&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/509685/original/file-20230213-28-jdrqo7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=437&fit=crop&dpr=1 754w, https://images.theconversation.com/files/509685/original/file-20230213-28-jdrqo7.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=437&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/509685/original/file-20230213-28-jdrqo7.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=437&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">By Year 3, Australian students whose parents did not finish secondary school are 1.3 years behind in numeracy compared with those whose parents have Bachelors’ degree or higher.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
</figcaption>
</figure>
<p>For example, University of Technology Sydney researchers Tomas Kennedy and Peter Siminski have used HILDA and other survey data to conclude about <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/1475-4932.12641">two-thirds of Australians aged 30-34</a> have higher incomes than their parents at the same age. </p>
<p>Australian National University researchers Nathan Deutscher and Bhashkar Mazumder have used ALife to <a href="https://www.sciencedirect.com/science/article/abs/pii/S0927537120300658">conclude</a> about 12% of Australians born into the bottom 20% of family income join the top 20% between the ages of 29 and 35. If a family’s wealth at birth had no bearing on a child’s wealth as an adult, that number would be 20%.</p>
<p>Deutscher has also <a href="https://www.aeaweb.org/articles?id=10.1257/app.20180329">used</a> ALife to follow individuals over 25 years and calculate the effect of where they lived as a child on their income in adulthood. Where a child grows up has a causal impact on their adult outcomes. This typically matters most during the teenage years.</p>
<p>The question is how much of this relates to their school.</p>
<p>To answer this and other questions, researchers need more comprehensive longitudinal data that enables linking things such as child-care attendance, test scores, and school choice across time and with other data sources. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/our-top-1-of-income-earners-is-an-increasingly-entrenched-elite-170445">Our top 1% of income earners is an increasingly entrenched elite</a>
</strong>
</em>
</p>
<hr>
<h2>Unique student identifier</h2>
<p>One important policy initiative of the National School Reform Agreement is the introduction of a “unique student identifier” (USI) to track individual student performance over time. This will enable data on educational outcomes to be more easily linked with other data held by state and federal governments, and provide researchers with a clearer picture of how educational outcomes shapes social, economic and health outcomes later life. </p>
<p>However, the Productivity Commission report notes the rollout of this initiative is well behind schedule.</p>
<p>The USI offers more than mere standardisation. Once in place, researchers will also be better able to evaluate the impact of education policy interventions by conducting randomised control trials, similar to those used by in medicine to assess the efficacy of new drugs and treatments. Such trials are crucial for assessing whether a particular education policy reform, for instance a new teaching method, has a causal impact on learning outcomes. </p>
<p>To date, the dearth of randomised control trials in education policy has held back the Australian education evidence base. </p>
<p>As noted in the University of Newcastle’s Teachers and Teaching Research Centre’s <a href="https://www.pc.gov.au/__data/assets/pdf_file/0011/347609/subdr084-school-agreement.pdf">submission</a> to the Productivity Commission, the use of randomised control trials in evaluating education policy is hampered by the expense of collecting data from students via surveys. Better data linkage can help solve this problem.</p>
<p>Building a more effective education system to support, maintain and improve social mobility requires the right tools. Without better integrated data and a more reliable education evidence base, taxpayers are far less likely to see a return on the billions being spent.</p><img src="https://counter.theconversation.com/content/199771/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Australia’s education system is not doing that well in correcting for the disadvantage students face in the classroom.Robert Breunig, Professor of Economics and Director, Tax and Transfer Policy Institute, Crawford School of Public Policy, Australian National UniversityMatthew Taylor, Director of the Centre for Independent Studies Intergenerational Program and PhD candidate at, Australian National UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1794812022-03-23T19:06:28Z2022-03-23T19:06:28ZStability and security: the keys to closing the mental health gap between renters and home owners<figure><img src="https://images.theconversation.com/files/453481/original/file-20220322-23-t1sjez.jpg?ixlib=rb-1.1.0&rect=0%2C875%2C3859%2C1948&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>That renters have poorer mental health than home owners is well-documented. But how much of this is due to being in rental accommodation itself, rather than other factors such as lower incomes?</p>
<p>Our research quantifies this, showing housing insecurity has a clear impost on renters’ mental health. The good news is <a href="https://doi.org/10.1016/j.socscimed.2022.114778">our results</a> show the gap between renters and home owners can be closed through longer rental tenure. </p>
<p>Controlling for other factors, once renters have lived in the same property for six years, their mental health is, on average, the same as homeowners. </p>
<p>This shows the importance of a sense of stability and continuity to personal well-being. Policies to promote stable housing are therefore an essential part of efforts to tackle our mental health crisis.</p>
<h2>How we did our research</h2>
<p>Age, relationship status, income and preexisting health conditions all help to explain the significant difference in mental health between owner-occupiers, private renters and those in social housing. </p>
<p>This is shown in the following graph, tracking the average mental health outcomes for owner occupiers, private rental tenants and social housing tenants in Australia over the past two decades.</p>
<hr>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/453744/original/file-20220323-17-rqr1mu.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/453744/original/file-20220323-17-rqr1mu.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/453744/original/file-20220323-17-rqr1mu.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=406&fit=crop&dpr=1 600w, https://images.theconversation.com/files/453744/original/file-20220323-17-rqr1mu.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=406&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/453744/original/file-20220323-17-rqr1mu.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=406&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/453744/original/file-20220323-17-rqr1mu.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=511&fit=crop&dpr=1 754w, https://images.theconversation.com/files/453744/original/file-20220323-17-rqr1mu.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=511&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/453744/original/file-20220323-17-rqr1mu.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=511&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="attribution"><a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
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<hr>
<p>This data comes from the Household, Income and Labour Dynamics in Australia (HILDA) survey, a nationally representative sample of about 18,000 Australians every year. It is a longitudinal study, meaning it surveys the same people each year on things including income, employment, housing, health and well-being. This enables researchers to use it to understand influences that change people’s lives over time. </p>
<p>HILDA enables mental health outcomes to be quantified and compared using two well-established scales. </p>
<p>One is known as <a href="https://www.rand.org/health-care/surveys_tools/mos/36-item-short-form.html">the 36-item Short Form Survey (SF-36)</a>. This include questions about anxiety, depression, and loss of behavioural or emotional control. The other is <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/4363.0%7E2017-18%7EMain%20Features%7EKessler%20Psychological%20Distress%20Scale%20-10%20(K10)%7E35">the Kessler Psychological Distress scale questionnaire (K10)</a>. This asks questions about levels of nervousness, agitation, psychological fatigue and depression. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/poor-housing-leaves-its-mark-on-our-mental-health-for-years-to-come-120595">Poor housing leaves its mark on our mental health for years to come</a>
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</em>
</p>
<hr>
<p>We used both scales to measure the effects of tenure stability – being stably housed without frequent forced moves – to ensure the validity of our results.</p>
<p>Our analysis focused on working aged people (25-65 years of age) living in low to middle income households, using a final sample of 7,060 people. </p>
<p>We then created comparable groups of owners and renters by matching people by their health and sociodemographic (income, education, employment, age, household characteristics, etc). This allowed us to control for other factors affecting mental health and isolate the effect of tenure stability.</p>
<h2>What we found</h2>
<p>Our results show the mental health gap between private renters and home owners is greatest in the first year and declines the longer someone lives in the same home. </p>
<p>The next graph shows the results from the SF-36 mental health scale. The shaded bars indicates the range of values that we can be 95% confident will contain the true value. The dotted lines show average predicted values of mental health outcomes. </p>
<p>By the sixth year the difference between home owners and renters is slight and statistically insignificant.</p>
<hr>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/453740/original/file-20220323-21-12dsbnq.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/453740/original/file-20220323-21-12dsbnq.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/453740/original/file-20220323-21-12dsbnq.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=406&fit=crop&dpr=1 600w, https://images.theconversation.com/files/453740/original/file-20220323-21-12dsbnq.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=406&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/453740/original/file-20220323-21-12dsbnq.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=406&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/453740/original/file-20220323-21-12dsbnq.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=511&fit=crop&dpr=1 754w, https://images.theconversation.com/files/453740/original/file-20220323-21-12dsbnq.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=511&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/453740/original/file-20220323-21-12dsbnq.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=511&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="attribution"><a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
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<hr>
<p>It’s important to not interpret this as suggesting that renters will have better mental health after ten years. We don’t know that. There is less data available to make confident predictions after a decade.</p>
<p>The next graph shows our results using the Kessler scale of psychological well-being. These results are slightly different but broadly consistent with the previous chart.</p>
<hr>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/453741/original/file-20220323-21-7pjvv.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/453741/original/file-20220323-21-7pjvv.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/453741/original/file-20220323-21-7pjvv.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=406&fit=crop&dpr=1 600w, https://images.theconversation.com/files/453741/original/file-20220323-21-7pjvv.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=406&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/453741/original/file-20220323-21-7pjvv.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=406&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/453741/original/file-20220323-21-7pjvv.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=511&fit=crop&dpr=1 754w, https://images.theconversation.com/files/453741/original/file-20220323-21-7pjvv.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=511&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/453741/original/file-20220323-21-7pjvv.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=511&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="attribution"><a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
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<hr>
<p>These results suggest home ownership itself is not essential to mental health of well-being. The more important factor is security and stability.</p>
<p>Studies overseas have found similar results. A 2019 study covering <a href="https://doi.org/10.1080/02673037.2020.1823332">25 European countries</a>, for example, found that while homeowners tend to have better health and well-being outcomes than renters, the smaller the difference in outcome the smaller the tenure gap. </p>
<p>This may be due to stable tenancy increasing people’s <a href="https://doi.org/10.1186/s12889-020-09224-0">sense of control and safety</a>, enabling <a href="https://www.jstor.org/stable/23361126">social connection and community participation</a>, and benefits for <a href="https://www.urban.org/research/publication/negative-effects-instability-child-development-research-synthesis">childhood development</a>. </p>
<p>This is likely why our research shows stability is particularly beneficial for private renters in the 35-44 age bracket – the cohort most likely to have young children. Their improvement with stability is larger than renters in other age groups and they become similar to homeowners in the level of well-being faster, reaching parity at three to four years.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/private-renters-are-doing-it-tough-in-outer-suburbs-of-sydney-and-melbourne-120427">Private renters are doing it tough in outer suburbs of Sydney and Melbourne</a>
</strong>
</em>
</p>
<hr>
<h2>Stronger rental protection is needed</h2>
<p>With the high costs of housing in Australia meaning an increasing proportion of the population are being shut out of home ownership, our results point to the importance of stronger tenant rights and improved minimum standards for rental housing conditions. </p>
<p>Most renters have little security, with lease length in Australia typically lasting one year, sometimes just six months. </p>
<p>One reform to give renters more security is to end no-grounds eviction – by which landlords can evict tenants on a fixed-term lease if they wish. The Victorian government did so <a href="https://www.consumer.vic.gov.au/housing/renting/changes-to-renting-laws/guide-to-rental-law-changes">in 2021</a>. Queensland will do so <a href="https://statements.qld.gov.au/statements/94557#:%7E:text=A%20rental%20property%20owner%20will,this%20request%20within%2014%20days">in October</a>. The other states and territories should follow suit.</p>
<p>Ending the merry-go-round of short, unstable leases means people can live better, healthier lives. That’s good not just for renters but society.</p><img src="https://counter.theconversation.com/content/179481/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ang Li receives funding from the University of Melbourne Early Career Researcher Grant Scheme and funding support from the National Health and Medical Research Council.</span></em></p><p class="fine-print"><em><span>Emma Baker receives funding from the Australian Research Council (ARC), the National Health and Medical Research Council (NHMRC), and The Australian Housing and Urban Research Institute (AHURI). She is currently board member of Habitat for Humanity (SA). </span></em></p><p class="fine-print"><em><span>Rebecca Bentley receives funding from the National Health and Medical Research Council and the Australian Research Council. </span></em></p>Controlling for other factors, the mental health cost of renting can be eliminated through longer tenure and greater security.Ang Li, Research Fellow, NHMRC Centre of Research Excellence in Healthy Housing, Centre for Health Policy, Melbourne School of Population and Global Health, The University of MelbourneEmma Baker, Professor of Housing Research and Deputy Director of the NHMRC Centre of Excellence for Healthy Housing, University of AdelaideRebecca Bentley, Professor of Social Epidemiology, Principal Research Fellow in Social Epidemiology and Director of the Centre for Research Excellence in Healthy Housing in Melbourne School of Population and Global Health, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1731522021-12-06T19:06:21Z2021-12-06T19:06:21ZGraduates lose pay advantage in tougher times, but overall workforce entrants seem surprisingly satisfied<figure><img src="https://images.theconversation.com/files/435768/original/file-20211206-13-1qe9pfs.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C6118%2C4082&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Around 400,000 people under the age of 25 leave full-time education and embark on their careers each year. The latest <a href="https://melbourneinstitute.unimelb.edu.au/hilda/publications/hilda-statistical-reports">HILDA Survey Statistical Report</a>, released today, shows how they have been faring since 2001. Full-time work has become harder, and the pay advantage university graduates enjoy has decreased. Yet, overall, new recruits to the workforce remain at least as happy with their jobs as they have been over the past two decades.</p>
<p>Over most of this century, and probably much of the 20th century, getting a foothold in the labour market and progressing up the career ladder has been a significant challenge for these young people. </p>
<p>Today, about 40% find full-time work in their first year out of full-time education. A further 35-40% get part-time work. </p>
<p>Their median hourly earnings are about two-thirds of median earnings of all workers. But, because many don’t have full-time jobs, their median weekly earnings are just over half those of the median worker.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/students-choice-of-university-has-no-effect-on-new-graduate-pay-and-a-small-impact-later-on-what-they-study-matters-more-171491">Students' choice of university has no effect on new graduate pay, and a small impact later on. What they study matters more</a>
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</em>
</p>
<hr>
<p>Five years after entering the workforce, about 85% are employed, two-thirds of them full-time. Earnings have also increased relative to the median worker five years after entry, but remain about 10% lower. </p>
<p>The educational attainment of young new entrants has increased considerably since 2001. The proportion with a university degree has increased from 15% in the early 2000s to 23% in recent years. The proportion who did not complete high school has halved from 24% to 12%. </p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"1446723351414726660"}"></div></p>
<h2>Poorer rewards for better qualifications</h2>
<p>Despite having better qualifications, young people’s employment outcomes and trajectories have not improved at all. Indeed, since the boom years before the global financial crisis (GFC), there has been a marked deterioration.</p>
<p>Full-time employment in the year of labour market entry has fallen from 50% to 41%. Unemployment has risen from 8.4% to 11.2%. Full-time employment rates in the following years have similarly fallen.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/1-in-4-unemployed-australians-has-a-degree-how-did-we-get-to-this-point-156867">1 in 4 unemployed Australians has a degree. How did we get to this point?</a>
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<p>The fall was most dramatic between the pre-GFC boom years (2004-2007) and the 2012-2015 period, and has been especially large for university graduates. </p>
<p>Those graduating in the pre-GFC boom years had a full-time employment rate of 68%. This fell to 53% for those graduating between 2012 and 2015.</p>
<p>In the boom years, graduates’ median earnings were 97% of overall median earnings in the year after graduation. By 2012-15, that proportion had fallen to only 82%. </p>
<p>There has since been a slight improvement. Some 56% of those who graduated between 2016 and 2018 were employed full-time in the year following graduation. However, outcomes for graduates were still considerably down on the early years of this century. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/435788/original/file-20211206-68670-1ox6ut3.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Vertical bar chart showing new graduates' rates of full-time employment and earnings compared to other workers, 2004-18" src="https://images.theconversation.com/files/435788/original/file-20211206-68670-1ox6ut3.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/435788/original/file-20211206-68670-1ox6ut3.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=379&fit=crop&dpr=1 600w, https://images.theconversation.com/files/435788/original/file-20211206-68670-1ox6ut3.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=379&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/435788/original/file-20211206-68670-1ox6ut3.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=379&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/435788/original/file-20211206-68670-1ox6ut3.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=476&fit=crop&dpr=1 754w, https://images.theconversation.com/files/435788/original/file-20211206-68670-1ox6ut3.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=476&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/435788/original/file-20211206-68670-1ox6ut3.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=476&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="attribution"><a class="source" href="https://melbourneinstitute.unimelb.edu.au/hilda/publications/hilda-statistical-reports">Chart: The Conversation. Data: HILDA Survey 2021</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/want-to-improve-your-chances-of-getting-a-full-time-job-a-double-degree-can-do-that-157306">Want to improve your chances of getting a full-time job? A double degree can do that</a>
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<p>Perhaps most striking is the decline in the relative earnings of university graduates in the years after they join the workforce. Career trajectories are now considerably “flatter” for more recent graduates. </p>
<p>For example, five years after entering the workforce, median earnings for those graduating in the first three years of this century were 23% greater than overall median earnings. By contrast, for graduates who entered the labour market in 2013 and 2014, median earnings five years later were still slightly below overall median earnings.</p>
<h2>More part-timers, paid less, but fairly satisfied</h2>
<p>In short, new entrants to the workforce are more likely to be part-time and paid less relative to the general population of workers. Curiously, however, they do not seem to be unhappy about their jobs. In some ways, quite the reverse is true.</p>
<p>The HILDA Survey measures workers’ satisfaction with a variety of aspects of their jobs. These aspects include the job overall, pay, job security and flexibility to balance work and non-work commitments. </p>
<p>Moreover, a battery of questions are administered each year that provide measures of “job quality”. These include the extent to which the job makes (excessive) demands of the worker, the level of autonomy the worker has, the interest and variety of the work, the security of employment and the fairness of the pay.</p>
<p>On all of these measures of job satisfaction and job quality, young new entrants report their jobs being at least as good now as they did in the early years of this century. </p>
<iframe title="Job satisfaction of employed new entrants, 2001-19" aria-label="Interactive line chart" id="datawrapper-chart-CjGEM" src="https://datawrapper.dwcdn.net/CjGEM/1/" scrolling="no" frameborder="0" style="border: none;" width="100%" height="400"></iframe>
<p>It is of course possible that job quality has on average improved. Aspects that come to mind include job security, flexibility to balance work and non-work commitments, job demands, autonomy and task variety.</p>
<p>However, it remains somewhat perplexing that, on a 0-10 scale (0 represents complete dissatisfaction and 10 complete satisfaction), average satisfaction with pay has increased from 6.7 to 7.4 between early this century and recent years. Similarly, average agreement of workers with the statement that they are fairly paid has risen from 4.4 to 4.9 on a 1-7 scale (1 corresponds to strong disagreement and 7 to strong agreement).</p>
<p>Objectively, pay has declined for new entrants relative to the broader workforce, particularly for university graduates. It therefore seems new entrants’ expectations have been recalibrated to reflect the harsher reality of the modern labour market.</p>
<p>Still, it is hard to understand why subjective assessments of jobs have <em>improved</em> in the context of objective data to the contrary. Perhaps young new entrants have lowered their expectations too much.</p><img src="https://counter.theconversation.com/content/173152/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Roger Wilkins receives funding from the Australian Research Council. </span></em></p>Rates of full-time employment and pay relative to other workers have fallen for the latest generation of new workers. Yet the HILDA Survey shows their reported job satisfaction has risen.Roger Wilkins, Professorial Fellow and Deputy Director (Research), HILDA Survey, Melbourne Institute of Applied Economic and Social Research, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1731512021-12-06T19:06:20Z2021-12-06T19:06:20ZHalf of women over 35 who want a child don’t end up having one, or have fewer than they planned<figure><img src="https://images.theconversation.com/files/435731/original/file-20211205-15-1adyinb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://unsplash.com/photos/tBtuxtLvAZs">Matthew Henry/Unsplash</a></span></figcaption></figure><p>At age 35, one in four Australian women and one in three men were hoping to have a child or more children in the future. But by age 49, about half report they haven’t yet had the number of children they hoped for.</p>
<p>That’s according to the <a href="https://melbourneinstitute.unimelb.edu.au/hilda">Household, Income and Labour Dynamics in Australia</a> (HILDA) 2021 report, released today. Over 20 years, HILDA has tracked more than 17,500 people in 9,500 households.</p>
<p>While some of the 49-year-old men may still father a child later in life, this is unlikely to be the case for women at that age. </p>
<p>In Australia and other high-income countries, there has been a long-term downward trend in the fertility rate: the average number of births per woman. In 2019, Australia hit a record-low of <a href="https://www.abc.net.au/news/2021-08-24/fertility-rates-in-australia-at-all-time-low-cause-for-concern/100367258">1.66 babies per woman</a>. </p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/australians-want-more-children-than-they-have-so-are-we-in-the-midst-of-a-demographic-crisis-81547">Australians want more children than they have, so are we in the midst of a demographic crisis?</a>
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<p>Low fertility rates are partly a result of more people <a href="https://apo.org.au/sites/default/files/resource-files/2020-07/apo-nid306881.pdf">not having children</a>, either by choice or through circumstance. About a quarter of Australian women in their reproductive years are likely <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/bb8db737e2af84b8ca2571780015701e/1e8c8e4887c33955ca2570ec000a9fe5!OpenDocument">to never have children</a>. </p>
<h2>Why are women having fewer children?</h2>
<p>There are many reasons why people have no or fewer children than planned towards the end of their reproductive years. </p>
<p>One contributing factor is the average age when women have their first child has increased in the last few decades and is now almost <a href="https://www.aihw.gov.au/reports/mothers-babies/australias-mothers-babies-data-visualisations/contents/demographics-of-mothers-and-babies/maternal-age">30 years</a>. This is in part explained by women spending more time in education and the workforce than they <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3529638/">used to</a>. </p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/balancing-work-and-fertility-isnt-easy-but-reproductive-leave-can-help-171497">Balancing work and fertility isn't easy – but reproductive leave can help</a>
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<p>Another reason is some women don’t find a <a href="https://rbej.biomedcentral.com/articles/10.1186/s12958-018-0389-z">suitable partner</a> or have a partner who is unwilling or “not ready” to commit to parenthood. </p>
<p>It’s also possible <a href="https://www.fertstert.org/article/S0015-0282(12)02343-6/fulltext">limited knowledge</a> about the factors affecting fertility leads to missed opportunities to have the number of children originally planned.</p>
<p>But whatever the reason, having children later in life will inevitably affect the number of children people ultimately have. While most women who try for a baby will succeed, some won’t, and some will have fewer children than they had planned to have. </p>
<h2>Fertility declines with age – so does IVF success</h2>
<p>The risk of not achieving pregnancy increases as a woman gets older because the number and quality of her eggs decline. </p>
<p>By 40, a woman’s fertility is about half the level it was when she was <a href="https://www.fertstert.org/article/S0015-0282(16)62849-2/fulltext">30</a>. And sperm quality decreases with age too, starting at around <a href="https://pubmed.ncbi.nlm.nih.gov/12801554/">age 45</a>. </p>
<figure class="align-center ">
<img alt="Man leans against a bike while looking at his phone." src="https://images.theconversation.com/files/435745/original/file-20211206-25-sh7k7m.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/435745/original/file-20211206-25-sh7k7m.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/435745/original/file-20211206-25-sh7k7m.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/435745/original/file-20211206-25-sh7k7m.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/435745/original/file-20211206-25-sh7k7m.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/435745/original/file-20211206-25-sh7k7m.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/435745/original/file-20211206-25-sh7k7m.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Men’s sperm quality also declines with age.</span>
<span class="attribution"><a class="source" href="https://unsplash.com/photos/zn2aUVfbUrk">Unsplash</a></span>
</figcaption>
</figure>
<p>Increasingly, people who struggle to conceive turn to assisted reproductive technology (ART) such as in-vitro fertilisation (IVF). </p>
<p>There was a 27% increase in the number of treatment cycles in the 2020–2021 financial year compared to the previous year, according to <a href="https://www.varta.org.au/resources/annual-reports">data released today</a> by the Victorian Assisted Reproductive Treatment Authority (VARTA). </p>
<p>But unfortunately, IVF is not a good back-up plan for age-related infertility. </p>
<p>On behalf of VARTA, researchers at the University of New South Wales tracked thousands of women who started IVF in Victoria in 2016 to see what had happened to them by June 30, 2020. The graph below shows the proportions of women who had a baby after one, two or three stimulated IVF cycles, including the transfer of all fresh and frozen embryos that resulted from these. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/435762/original/file-20211206-19-mq97.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/435762/original/file-20211206-19-mq97.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=427&fit=crop&dpr=1 600w, https://images.theconversation.com/files/435762/original/file-20211206-19-mq97.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=427&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/435762/original/file-20211206-19-mq97.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=427&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/435762/original/file-20211206-19-mq97.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=537&fit=crop&dpr=1 754w, https://images.theconversation.com/files/435762/original/file-20211206-19-mq97.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=537&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/435762/original/file-20211206-19-mq97.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=537&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="attribution"><span class="source">Victorian Assisted Reproductive Treatment Authority</span></span>
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<p>Women who started IVF when they were 30 years old had a 48% chance of a baby after one stimulated cycle, a 62% chance after two cycles and a 67% chance after three cycles. </p>
<p>But for a woman who started IVF at age 40, there was only a 13% chance of a baby after one stimulated cycle, a 21% chance after two cycles and a 25% chance after three cycles.</p>
<h2>Fertility options for over-35s</h2>
<p>So, what are the options for women in their mid-30s who want to have a child or more children? </p>
<p>The <a href="https://www.varta.org.au/resources/annual-reports">Victorian Assisted Reproductive Treatment Authority data</a> reveal some women aren’t waiting to find a partner. Over four years, there has been a 48% increase in single women using donor sperm to have a child, and a 50% increase among same-sex couples. </p>
<p>But the number of men who donate sperm in Victoria has remained the same, so there is now a shortage of donor sperm.</p>
<figure class="align-center ">
<img alt="Woman sits reading in a medical waiting room." src="https://images.theconversation.com/files/435746/original/file-20211206-15-3tu035.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/435746/original/file-20211206-15-3tu035.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=401&fit=crop&dpr=1 600w, https://images.theconversation.com/files/435746/original/file-20211206-15-3tu035.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=401&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/435746/original/file-20211206-15-3tu035.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=401&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/435746/original/file-20211206-15-3tu035.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/435746/original/file-20211206-15-3tu035.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/435746/original/file-20211206-15-3tu035.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Single women are increasingly using donor sperm to have a baby.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/young-patient-reading-magazine-waiting-room-421203046">Shutterstock</a></span>
</figcaption>
</figure>
<p>The option of freezing eggs for later use is also used by more and more women. Almost 5,000 women now have frozen eggs in storage in Victoria, up 23% on the previous year. </p>
<p>But it’s important to remember that although having stored eggs offers the chance of a baby, it’s <a href="https://www.varta.org.au/resources/news-and-blogs/whats-your-chance-having-baby-frozen-eggs">not a guarantee</a>. </p>
<p>For women in their 40s, using eggs donated by a younger woman increases their chance of having a baby. Our study showed women aged 40 and over who used donor eggs were five times more likely to have a live birth than women who used their <a href="https://obgyn.onlinelibrary.wiley.com/doi/10.1111/ajo.13179">own eggs</a>. </p>
<p>But finding a woman who is willing to donate her eggs can be <a href="https://www.tandfonline.com/doi/full/10.1080/14647273.2021.1873430">difficult</a>. Most women who use donated eggs recruit their donor themselves and some use eggs imported from overseas <a href="https://www.varta.org.au/resources/annual-reports">egg banks</a>.</p>
<p>So while people might think pregnancy will happen as soon as they stop contraception, having a baby is <a href="https://www.yourfertility.org.au/fertility-week-2021">not always easy</a>. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/egg-freezing-wont-insure-women-against-infertility-or-help-break-the-glass-ceiling-46619">Egg freezing won't insure women against infertility or help break the glass ceiling</a>
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<img src="https://counter.theconversation.com/content/173151/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Karin Hammarberg receives funding from The Australian Government Department of Health. She is a Senior Research Officer at the Victorian Assisted Reproductive Treatment Authority. </span></em></p>While most women who try for a baby will succeed, some won’t, and some will have fewer children than they had planned to have.Karin Hammarberg, Senior Research Fellow, Global and Women's Health, School of Public Health & Preventive Medicine, Monash UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1708772021-11-08T06:34:26Z2021-11-08T06:34:26ZWhy happiness is becoming more expensive and out of reach for many Australians<figure><img src="https://images.theconversation.com/files/430693/original/file-20211108-10171-1sm1wxt.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C5010%2C3710&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>One of the most well-known findings in the economic study of happiness is that, on average, happiness increases with income, but <a href="https://www.theguardian.com/money/2016/jan/07/can-money-buy-happiness">at a certain point diminishing returns set in</a>.</p>
<p>In other words, money can only buy a fixed level of happiness, after which extra income and wealth doesn’t make much difference. Presumably after this point, happiness depends on other things, such as <a href="https://blogs.lse.ac.uk/behaviouralscience/2016/01/04/does-money-buy-happiness-it-depends-on-the-context/">health, leisure time, quality of friendships and close family</a>.</p>
<p>Our new study, published in October, found the income level required to be happy in Australia <a href="https://www.sciencedirect.com/science/article/pii/S235282732100224X">has been increasing and moving out of reach of most Australians</a>.</p>
<p>The happiness of increasing numbers of Australians has become more dependent on income than ever this millennium.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/can-money-buy-happiness-29570">Can money buy happiness?</a>
</strong>
</em>
</p>
<hr>
<h2>Happiness increases with income, to a point</h2>
<p>Nobel prize winning psychologist Daniel Kahneman first described the change point where extra income begins to matter less for happiness. He found this change point <a href="https://www.pnas.org/content/107/38/16489.short">in the United States was US$75,000</a> in 2008.</p>
<p>This was substantially more than the US median income of $52,000 in the same year.</p>
<p>The difference revealed an unacknowledged inequity in the distribution of well-being in the US economy. The happiness of the poorest majority of the US population (<a href="https://dqydj.com/household-income-by-year/">68%</a>) was tied to marginal changes in income, while that of a richer minority (32%) wasn’t.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/the-paradox-of-happiness-the-more-you-chase-it-the-more-elusive-it-becomes-112217">The paradox of happiness: the more you chase it the more elusive it becomes</a>
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</em>
</p>
<hr>
<p>But what about fairer, more egalitarian countries with a strong middle-class, like Australia? Since the start of the millennium, Australia has enjoyed a <a href="https://www.pc.gov.au/research/completed/rising-inequality">growing household real income and stable levels of income inequality</a>, better than the US and on <a href="https://data.oecd.org/inequality/income-inequality.htm">par with the OECD average</a>.</p>
<p>And the average level of <a href="https://www.oecdbetterlifeindex.org/topics/life-satisfaction/">life-satisfaction</a> in Australia has been reliably higher than the OECD average, as well as the US.</p>
<p>In terms of real income, income inequality and overall life satisfaction, Australia has a stable and solid record.</p>
<p>However, life satisfaction isn’t the same as happiness.</p>
<h2>What did we study?</h2>
<p>We used data from the influential Household, Income and Labour Dynamics in Australia (HILDA) <a href="https://melbourneinstitute.unimelb.edu.au/hilda">survey</a>, provided by the Melbourne Institute.</p>
<p>This data show Australia’s average happiness has been declining since 2009.</p>
<p>The annual HILDA survey asks Australians to recall how often they felt happy, joyful, sad, tired or depressed in the last month, in each year since 2001.</p>
<p>The frequency of these feelings is quite different from a single rating of how satisfied you are with your life.</p>
<p>In <a href="https://www.sciencedirect.com/science/article/pii/S235282732100224X">our study</a>, we combined each person’s frequencies into a single <em>happiness score</em> to see how it changed between 2001 and 2019 in relation to household income.</p>
<p>When people were asked to consider how often they experienced different emotions in the past month, rather than how satisfied they are with their life in general, the average happiness score peaked in 2009 and has declined every year since 2012.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/429661/original/file-20211101-19-1akyflf.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/429661/original/file-20211101-19-1akyflf.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=429&fit=crop&dpr=1 600w, https://images.theconversation.com/files/429661/original/file-20211101-19-1akyflf.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=429&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/429661/original/file-20211101-19-1akyflf.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=429&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/429661/original/file-20211101-19-1akyflf.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=539&fit=crop&dpr=1 754w, https://images.theconversation.com/files/429661/original/file-20211101-19-1akyflf.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=539&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/429661/original/file-20211101-19-1akyflf.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=539&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Household income and life satisfaction have been stable in Australia since 2009, while happiness has been decreasing.</span>
<span class="attribution"><span class="source">HILDA survey</span></span>
</figcaption>
</figure>
<h2>What did we find?</h2>
<p>The change point at which the happiness of most Australians no longer strongly depends on income has almost doubled from A$43,000 to A$74,000.</p>
<p>At the same time, the median income has lingered at less than A$50,000 per year since 2009. </p>
<p>The number of Australians on an income below this change point has increased from around 60% to 74%.</p>
<p>These changes have taken place after adjusting for inflation and cost-of-living increases. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/430696/original/file-20211108-10121-109l8gj.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/430696/original/file-20211108-10121-109l8gj.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=429&fit=crop&dpr=1 600w, https://images.theconversation.com/files/430696/original/file-20211108-10121-109l8gj.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=429&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/430696/original/file-20211108-10121-109l8gj.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=429&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/430696/original/file-20211108-10121-109l8gj.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=539&fit=crop&dpr=1 754w, https://images.theconversation.com/files/430696/original/file-20211108-10121-109l8gj.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=539&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/430696/original/file-20211108-10121-109l8gj.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=539&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Average happiness has declined as the population below the income change point has increased.</span>
<span class="attribution"><span class="source">HILDA survey</span></span>
</figcaption>
</figure>
<h2>So what does this trend over time mean?</h2>
<p>Our work shows someone living in the average Australian household earning A$50,000 in 2001 and the equivalent amount in 2019 (adjusted for inflation) has become much less happy over the past two decades.</p>
<p>On the other hand, the happiness of people living in a wealthier household (for example, $80,000 per household) has been largely preserved.</p>
<p>Over the first two decades of this millennium, more and more Australians’ happiness has become dependent on their income, despite high life satisfaction ratings and stable income inequality across households.</p>
<p>These measures of economic well-being and equity, typically published by economic wonks and government policy-makers, aren’t revealing potentially important changes in the underlying marginal return on income across the Australian economy.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/so-many-in-the-west-are-depressed-because-theyre-expected-not-to-be-79672">So many in the West are depressed because they're expected not to be</a>
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</em>
</p>
<hr>
<p>Income by itself doesn’t explain a large proportion of the variance in happiness, only around 5% (ranging between 1.6% to 14.8% in our study). But it’s still concerning because across the entire population these small changes can be expected to accumulate.</p>
<p>Australians’ happiness is becoming more sensitive to income as the change point has increased. At the same time, incomes are stagnating and happiness levels are declining, which is likely to drive further inequities in well-being between the rich and poor in Australia.</p>
<p>As Australia heads into a post-COVID world and deals with the economic after-effects of the pandemic, our government and its advisers need to pay attention to more than GDP and growth, and ask whether the distribution of well-being and happiness is improving for everyone.</p><img src="https://counter.theconversation.com/content/170877/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Nick Glozier receives funding from the Australian Research Council's Centre of Excellence for Children and Families over the Life Course (Project ID CE200100025).</span></em></p><p class="fine-print"><em><span>Richard Morris does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The change point at which the happiness of most Australians no longer strongly depends on income has almost doubled from A$43,000 to A$74,000.Richard Morris, Research scientist, University of SydneyNick Glozier, Professor of Psychological Medicine, BMRI & Disciplne of Psychiatry, University of SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1665662021-08-24T04:50:53Z2021-08-24T04:50:53ZThe official figures say wages aren’t growing —
here’s why they’re wrong<figure><img src="https://images.theconversation.com/files/417538/original/file-20210824-19-4nqcvj.jpg?ixlib=rb-1.1.0&rect=13%2C41%2C3081%2C1754&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Peterfz30/Shutterstock</span></span></figcaption></figure><p>Have you heard about the latest wage figures? I hope not. They’re meaningless.</p>
<p>What the widely quoted measure of <a href="https://www.abs.gov.au/statistics/labour/earnings-and-work-hours/average-weekly-earnings-australia/may-2021">average weekly earnings</a> purports to show is that wages grew a mere 0.1% over the year to May. It’s not true. It’s not what happened. For most of us, wages grew by much more.</p>
<p>That’s not to say wage growth has been high — the best estimate is that private sector wages have climbed 1.9% over the past year and public sector wages a record low 1.3% — but both are still well above nothing, and generally well above our near-record low rates of consumer price inflation.</p>
<p>A check-in with reality would tell you that mid last year the Fair Work Commission lifted award wages <a href="https://www.fairwork.gov.au/about-us/news-and-media-releases/2020-media-releases/july-2020/20200701-awr-media-release-1-july-2020">1.75%</a>. Mid this year it lifted them <a href="https://www.fairwork.gov.au/about-us/news-and-media-releases/2021-media-releases/july-2021/20210701-annual-wage-review-2021-media-release">2.5%</a>.</p>
<p>So how could it be that the official figures, published by a trusted organisation, the Australian Bureau of Statistics, show average earnings static, climbing just 0.1%?</p>
<p>The first thing to say is that the bureau is probably embarrassed by the figures.</p>
<p>They are “not designed to produce movement in earnings data” it says on its website, before acknowledging that’s <a href="https://www.abs.gov.au/methodologies/average-weekly-earnings-australia-methodology/may-2021">exactly what they are used for</a>.</p>
<h2>‘Not designed’ to measure wage growth</h2>
<p>Australia’s pensions are adjusted twice a year in accordance with a formula that includes average weekly earnings. </p>
<p>The figure is built into private contracts. If it wasn’t published, many contracts wouldn’t work.</p>
<p>To create it, the bureau surveys about 5,130 employers every six months, asks what they are paying their workers, and uses the answers to calculate an average female wage, an average male wage, an average part-time wage, an average full-time wage, and a lot of other averages besides.</p>
<h2>The ‘average wage’ isn’t typical</h2>
<p>One problem is that averages are not representative. The survey suggests the average full-time wage is <a href="https://www.abs.gov.au/statistics/labour/earnings-and-work-hours/average-weekly-earnings-australia/may-2021#methodology">A$90,330</a>, whereas in reality six in ten earn less. </p>
<p>The mid-way (median) full-time worker earns <a href="https://www.abs.gov.au/statistics/labour/earnings-and-work-hours/employee-earnings-and-hours-australia/latest-release">$10,000 less</a>. The average is boosted by a few enormously high earners and can’t be taken seriously.</p>
<p>An entirely separate problem arises when you try to use averages to calculate growth. The average is only an average of what’s averaged, and that can change.</p>
<h2>When low-wage workers lose jobs…</h2>
<p>Here’s an example. What would happen if a recession caused everyone working only four hours per week to lose two hours? It would push their earnings down and push down average weekly earnings, which would be about right.</p>
<p>But what if each of those people lost a further two hours, taking their hours down to zero. Their low hours would no longer be included in the total to be averaged, and (without them in it) average earnings would climb.</p>
<h2>…the average wage goes up</h2>
<p>That’s what happened a bit over a year ago. The bureau says COVID restrictions “led to a large decrease in the number of jobs, people employed and hours worked, with lower-paid jobs and industries particularly impacted, including jobs in accommodation and food services, arts and recreation services”.</p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/417536/original/file-20210824-23-6e09hl.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/417536/original/file-20210824-23-6e09hl.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/417536/original/file-20210824-23-6e09hl.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=969&fit=crop&dpr=1 600w, https://images.theconversation.com/files/417536/original/file-20210824-23-6e09hl.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=969&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/417536/original/file-20210824-23-6e09hl.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=969&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/417536/original/file-20210824-23-6e09hl.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1218&fit=crop&dpr=1 754w, https://images.theconversation.com/files/417536/original/file-20210824-23-6e09hl.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1218&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/417536/original/file-20210824-23-6e09hl.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1218&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Unemployed catering workers pushed the average wage up.</span>
<span class="attribution"><span class="source">PK Studio/Shutterstock</span></span>
</figcaption>
</figure>
<p>The loss of those lower-paid and low hours jobs in catering, the arts and other industries “had the effect of increasing the value of average weekly earnings”.</p>
<p>Layoffs pushed the average wage up.</p>
<p>Fortunately, the bureau says by November many of the low-wage workers laid off got some hours back, depressing growth in the average wage (but not growth in any actual wages) resulting in recorded growth of just 0.1% in the year to May.</p>
<p>Many have probably since lost hours with this year’s renewed lockdowns, pushing average wages (but not actual wages) higher again.</p>
<p>It’s enough to make you think the legislation and contracts should switch from a measure that’s close to worthless to one that actually measures wage growth.</p>
<p>The bureau offers such a measure. It’s called the <a href="https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release">wage price index</a>, and the bureau has been trying to encourage people to switch to it since 1998.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/other-australians-dont-earn-what-you-think-59-538-is-typical-162251">Other Australians don't earn what you think. $59,538, is typical</a>
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</em>
</p>
<hr>
<p>It is also built around a survey of employers, but rather than asking how much they pay each worker, it asks how much they pay for each job title and classification. The bureau calculates growth by comparing like with like, regardless of how many people were employed in each classification at the time.</p>
<hr>
<p><strong>Wage Price Index</strong></p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/435814/original/file-20211206-19-978iqs.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/435814/original/file-20211206-19-978iqs.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/435814/original/file-20211206-19-978iqs.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=247&fit=crop&dpr=1 600w, https://images.theconversation.com/files/435814/original/file-20211206-19-978iqs.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=247&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/435814/original/file-20211206-19-978iqs.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=247&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/435814/original/file-20211206-19-978iqs.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=310&fit=crop&dpr=1 754w, https://images.theconversation.com/files/435814/original/file-20211206-19-978iqs.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=310&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/435814/original/file-20211206-19-978iqs.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=310&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Annual growth in total hourly rates of pay excluding bonuses.</span>
<span class="attribution"><a class="source" href="https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/sep-2021">ABS</a></span>
</figcaption>
</figure>
<hr>
<p>The results are believable: private sector like-for-like wages climbed 1.9% over the past year, and public sector wages 1.3%.</p>
<p>But even they are not right when it comes to the wage growth of individuals.</p>
<p>Individuals get promoted, and (much less often) demoted. They change jobs, usually for better ones.</p>
<h2>People aren’t positions</h2>
<p>So if you were trying to use the recent like-for-like wage growth of around 2% per year as a guide to what will happen to your own wage (in order, for instance, to work out whether you could afford a mortgage) you would probably guess too low.</p>
<p>It’s why many Australians — those who’ve got not only regular pay rises but also promotions — wonder what the fuss about low wage growth is about.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/top-economists-say-cutting-immigration-is-no-way-to-boost-wages-165394">Top economists say cutting immigration is no way to boost wages</a>
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</em>
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<hr>
<p>A good measure of the actual wage growth of Australians doesn’t yet exist, although it might soon. The bureau is working on tracking individuals through the use of payroll data reported to the tax office.</p>
<p>In the meantime the (<a href="https://melbourneinstitute.unimelb.edu.au/hilda">HILDA</a>) Household, Income and Labour Dynamics in Australia survey that tracks 17,000 Australians over time finds that the actual wage growth of full-time workers is indeed higher than the like-for-like figure suggests (which might help explain soaring home prices) although it too is weakening.</p>
<p>Part time workers don’t seem to get the same benefit. </p>
<p>As <a href="https://pursuit.unimelb.edu.au/articles/is-wages-growth-really-as-weak-as-we-think">Mark Wooden</a>, director of the HILDA survey puts it, “Australians in full-time work are doing pretty well – provided they remain in employment”.</p><img src="https://counter.theconversation.com/content/166566/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Peter Martin does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>When low-wage workers lose jobs the average wage goes up. There’s a better measure, but we’re not using it.Peter Martin, Visiting Fellow, Crawford School of Public Policy, Australian National UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1634972021-06-29T19:58:25Z2021-06-29T19:58:25ZNearly 40% of Australian families can’t ‘afford’ childcare<figure><img src="https://images.theconversation.com/files/408778/original/file-20210629-17-6zac6s.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/happy-african-family-having-fun-together-1897808689">Shutterstock</a></span></figcaption></figure><p>Childcare is unaffordable for more than 385,000 Australian families, a new report from Victoria University’s Mitchell Institute shows.</p>
<p>The <a href="https://www.vu.edu.au/mitchell-institute/early-learning/assessing-childcare-affordability-in-australia">Counting the cost to families: assessing childcare affordability in Australia</a> report uses an international benchmark of no more than 7% of disposable income spent on childcare to determine childcare affordability for families.</p>
<figure class="align-right ">
<img alt="" src="https://images.theconversation.com/files/408753/original/file-20210628-19-hvqex7.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/408753/original/file-20210628-19-hvqex7.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=843&fit=crop&dpr=1 600w, https://images.theconversation.com/files/408753/original/file-20210628-19-hvqex7.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=843&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/408753/original/file-20210628-19-hvqex7.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=843&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/408753/original/file-20210628-19-hvqex7.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1059&fit=crop&dpr=1 754w, https://images.theconversation.com/files/408753/original/file-20210628-19-hvqex7.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1059&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/408753/original/file-20210628-19-hvqex7.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1059&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Mitchell Institute report into costs of childcare.</span>
</figcaption>
</figure>
<p>We found nearly 40% of families using childcare use more than 7% of their household income on childcare.</p>
<p>We also found about 83% of families who use childcare spend more on childcare than on utilities or clothing. About 70% spend more on childcare than transport, and over 30% spend more on childcare than on groceries.</p>
<p>Our report also models the impact of the Australian government’s <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview202122/ChildCareSubsidy">recent childcare subsidy announcement</a>, due to take effect in July 2022. These changes will help families with two or more children under the age of six in childcare. But they still leave childcare unaffordable for about 336,000 families.</p>
<h2>How do we measure childcare costs to families?</h2>
<p>A lot of the discussion on childcare affordability focuses on <a href="https://www.pc.gov.au/research/ongoing/report-on-government-services/2021/child-care-education-and-training">per-hour costs</a> and anecdotal evidence based on individual families’ circumstances. These are important, but can be hard to relate to for many families.</p>
<p>The Australian government also provides greater levels of subsidies to families who earn less. This means how much a family earns can substantially affect total childcare costs.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/we-need-a-new-childcare-system-that-encourages-women-to-work-not-punishes-them-for-it-142275">We need a new childcare system that encourages women to work, not punishes them for it</a>
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<p>A better way to understand childcare costs is to explore its impact on the family budget.</p>
<p>To do this, we used data from the<a href="https://melbourneinstitute.unimelb.edu.au/hilda"> Household Income and Labour Dynamics in Australia</a> (HILDA) survey. The survey collects detailed data on spending from over 7,000 households every year.</p>
<p>The figure below uses this HILDA data and compares the cost of childcare to other common household expenses.</p>
<p><iframe id="47nke" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/47nke/5/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<h2>What is affordable childcare?</h2>
<p>Australia does not have an accepted way to measure childcare affordability.</p>
<p>But we do have affordability measures for other common household expenses. Housing stress for lower-income households, for example, is defined as a lower-income household spending more than 30% of gross income <a href="https://www.aihw.gov.au/reports/australias-welfare/housing-affordability">on accommodation</a>.</p>
<p>The US Department of Health and Human Services has set a childcare “<a href="https://www.brookings.edu/research/why-the-federal-government-should-subsidize-childcare-and-how-to-pay-for-it/">affordability threshold</a>” for low to middle income families of 7% of take-home income. If families are spending more than 7%, the department considers childcare “unaffordable”.</p>
<p>The Biden administration has included the 7% affordability threshold in its <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2021/04/28/fact-sheet-the-american-families-plan/">childcare package worth US$225 billion over ten years</a>. In the proposal, families earning 1.5 times the state median income will pay no more than 7% of their take home pay on childcare. For families earning 75% or less of the state median income, childcare will be free.</p>
<p>The figure below uses this 7% threshold to explore childcare affordability in Australia. It shows annual childcare costs as a proportion of family take home pay. Households exceeding the 7% threshold are in red.</p>
<p><iframe id="RlsNI" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/RlsNI/5/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<p>This figure suggests about 386,000 Australian households, or about 39% of families using childcare, pay more than 7% of their household income on childcare expenses.</p>
<p>Because childcare costs vary by how much a family earns, it is also important to explore out of pocket costs by household income. The figure below shows out of pocket expenses as a proportion of take-home pay by different income groups.</p>
<p><iframe id="2qClY" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/2qClY/4/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<p>This figure shows childcare affordability is an issue for many families, regardless of how much they earn. However, those on lower incomes have some of the highest rates of unaffordable childcare.</p>
<p>For instance, more than 33% of families who earn under A$70,000 per year spend 7-15% of their household income on childcare. And 15% of this group spend more than 15% on childcare. </p>
<p>This is compared to 8% of families earning more than A$200,000 spending over 15% on childcare.</p>
<h2>Do the recent changes make childcare more affordable?</h2>
<p>Childcare costs can multiply when families have more than one child in care.</p>
<p>The federal government’s recently announced changes aim to help families with multiple children in childcare. Under the proposal, the subsidy families receive for second and subsequent children will increase by up to 30 percentage points (capped at 95%). </p>
<p>This means families eligible for a 60% subsidy would now be eligible for a 90% subsidy on their second child if both children are aged under six.</p>
<p>The changes will also help families with a combined income of more than A$189,390, by removing the subsidy cap that restricts them to a maximum of A$10,560 per child a year.</p>
<p>The government says the new measures will impact 250,000 families when it is introduced in June 2022. But the <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview202122/ChildCareSubsidy">federal budget estimates</a> about 1.3 million families will use childcare in 2022-23. This means childcare affordability will not improve for about 1 million families.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/an-extra-1-7-billion-for-child-care-will-help-some-it-wont-improve-affordability-for-most-160163">An extra $1.7 billion for child care will help some. It won't improve affordability for most</a>
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<p>We modelled the impact of the changes and applied the new subsidy rates to family childcare expenses reported in the HILDA survey. </p>
<p>We found, under the proposal, about 50,000 families would move below the 7% affordability threshold. This means about 336,000 families would remain with unaffordable childcare.</p>
<p>Unaffordable childcare often results in parents – usually women – deciding not to work, or working fewer hours than they would like.</p>
<p><a href="https://nfaw.org/wp-content/uploads/2020/10/Appendix-A.pdf">Recent reports</a> show increasing childcare affordability will improve workforce participation. It will also mean more children can receive the developmental benefits of formal early learning.</p><img src="https://counter.theconversation.com/content/163497/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Peter Hurley works for the Mitchell Institute who have received funding from the Minderoo Foundation as part of the Thrive by Five initiative to partially fund this research.</span></em></p><p class="fine-print"><em><span>Hannah Matthews works for the Mitchell Institute who have received funding from the Minderoo Foundation as part of the Thrive by Five initiative to partially fund this research</span></em></p>A report uses an international benchmark of no more than 7% of disposable income spent on childcare to determine affordability. It finds childcare is unaffordable for 386,000 Australian families.Peter Hurley, Policy Fellow, Mitchell Institute, Victoria UniversityHannah Matthews, Policy Fellow, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1503622020-11-19T18:54:16Z2020-11-19T18:54:16ZSingle parents are getting priced out of daycare, triggering a vicious cycle of entrenched poverty<figure><img src="https://images.theconversation.com/files/369962/original/file-20201118-13-p7xn2e.jpg?ixlib=rb-1.1.0&rect=0%2C44%2C5991%2C3799&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Female workforce participation has risen for the past two decades in Australia, and in turn, more young kids have been <a href="https://www.abs.gov.au/statistics/people/education/childhood-education-and-care-australia/latest-release#key-findings">attending</a> formal childcare.</p>
<p>So it’s very surprising the latest <a href="https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0009/3537441/HILDA-Statistical-report-2020.pdf">Household, Income and Labour Dynamics in Australia (HILDA) Survey</a> shows a steep fall in the use of formal childcare among single-parent households, which by and large are headed by women.</p>
<p>The HILDA Survey has been running since 2001, and the same 17,000 or so Australians are interviewed every year on issues such as health, family and work. The newest report, <a href="https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0009/3537441/HILDA-Statistical-report-2020.pdf">published today</a>, is based on 2018 figures, the most recent available data.</p>
<p>According to the HILDA Survey, 52% of single-parent households with kids aged under four used formal childcare back in 2016. But in 2018, that share has dropped to 35%. The same trend isn’t observed among coupled parents.</p>
<p>While it is unclear what is driving this trend, it is potentially a sign many single parents simply can’t afford formal childcare. If so, it risks kicking off a vicious cycle in which lack of money, lack of childcare, and lack of employment opportunities trap single parents in entrenched disadvantage.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/369971/original/file-20201118-21-122zdfm.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/369971/original/file-20201118-21-122zdfm.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/369971/original/file-20201118-21-122zdfm.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=427&fit=crop&dpr=1 600w, https://images.theconversation.com/files/369971/original/file-20201118-21-122zdfm.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=427&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/369971/original/file-20201118-21-122zdfm.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=427&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/369971/original/file-20201118-21-122zdfm.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=536&fit=crop&dpr=1 754w, https://images.theconversation.com/files/369971/original/file-20201118-21-122zdfm.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=536&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/369971/original/file-20201118-21-122zdfm.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=536&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">About 52% of single parent households with kids aged under four used formal childcare back in 2016. But in 2018, however, that share has dropped to just 35%.</span>
<span class="attribution"><span class="source">HILDA 2020</span></span>
</figcaption>
</figure>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/the-child-care-sector-needs-an-overhaul-not-more-tinkering-with-subsidies-and-tax-deductions-150264">The child-care sector needs an overhaul, not more tinkering with subsidies and tax deductions</a>
</strong>
</em>
</p>
<hr>
<h2>A worrying trend</h2>
<p>There doesn’t appear to be an obvious explanation for this phenomenon. The change in usage patterns comes at a time when childcare subsidies had just been substantially increased for the majority of low- and middle-income households, <a href="https://aifs.gov.au/sites/default/files/publication-documents/1907_cce_early_monitoring_report.pdf">reducing</a> their out-of-pocket expenses.</p>
<p>There also appears to be no reduced need for care; employment levels among single parents remained stable even while childcare usage dropped.</p>
<p>It may be many single parents are instead relying on informal childcare arrangements, such as relatives or friends. The HILDA data reveal a growing number of single parents with kids below school age, who have a job but no formal care arrangement. </p>
<p>In 2018, only 52% of all employed single parents with young kids had a formal care arrangement, compared with an average of 70% over the previous ten years.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/369970/original/file-20201118-13-15r9qc6.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A woman and child walk together." src="https://images.theconversation.com/files/369970/original/file-20201118-13-15r9qc6.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/369970/original/file-20201118-13-15r9qc6.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/369970/original/file-20201118-13-15r9qc6.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/369970/original/file-20201118-13-15r9qc6.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/369970/original/file-20201118-13-15r9qc6.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/369970/original/file-20201118-13-15r9qc6.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/369970/original/file-20201118-13-15r9qc6.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">In 2018, only 52% of all employed single parents with young kids had a formal care arrangement, compared to an average of 70% over the previous ten years.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
</figcaption>
</figure>
<p>This is a worrying new trend. It sets up single parents for a host of logistical problems juggling multiple care arrangements and unreliable access to care, which can jeopardise their employment in the longer term.</p>
<p>And because it’s unregulated, there’s no way to enforce quality standards of informal care arrangements. That could potentially <a href="https://docs.education.gov.au/system/files/doc/other/aifs_crit_review_ec_lit_final_pdf_0.pdf">limit</a> children’s social, behavioural and cognitive <a href="https://www.aihw.gov.au/reports/children-youth/learning-development-impact-of-early-childhood-edu/contents/summary">development</a> if they miss out on formal care.</p>
<p>As in <a href="https://www.oecd.org/els/family/Who_uses_childcare-Backgrounder_inequalities_formal_ECEC.pdf">other countries</a>, Australian single-parent families who don’t access formal childcare are the most disadvantaged; they are more likely to live in remote or regional Australia, and in socially and economically disadvantaged locations, and the parents in these families have lower educational qualifications.</p>
<p>There is a strong link between families that don’t or cannot access formal childcare, and families affected by poverty and lack of employment.</p>
<h2>A cycle of poverty and entrenched disadvantage</h2>
<p>HILDA tracks households over time, so we can also see each family’s circumstances and childcare usage in the year prior. When we analysed single-parent households over time, we found two important facts.</p>
<p>First, the falling rates of formal childcare usage among single parents isn’t just about a shift over time, in which fewer and fewer single new families <em>begin</em> to use the formal care sector when their child is old enough. </p>
<p>It is, to a large extent, about families that already had a formal care arrangement in place, but cancelled their enrolments before their kids reached school age.</p>
<p>And second, just before these families stopped using childcare, they tended to be somewhat poorer than their counterparts who continued to use it — but not as poor as the families are who don’t use childcare in the long run.</p>
<p>In other words, there could be a vicious cycle whereby lack of income (whether because the single parent is unemployed, or employed on a low wage) prompts families to drop childcare, further worsening their economic position down the track because work opportunities are more constrained. It’s hard to maximise work opportunities if you don’t have reliable childcare.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/369973/original/file-20201118-19-sgp7i.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A woman works while holding a baby." src="https://images.theconversation.com/files/369973/original/file-20201118-19-sgp7i.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/369973/original/file-20201118-19-sgp7i.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/369973/original/file-20201118-19-sgp7i.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/369973/original/file-20201118-19-sgp7i.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/369973/original/file-20201118-19-sgp7i.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/369973/original/file-20201118-19-sgp7i.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/369973/original/file-20201118-19-sgp7i.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">It appears that even after the recent increase in subsidies, our childcare system is badly set up.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
</figcaption>
</figure>
<p>The HILDA Survey had already shown a substantial increase in relative poverty rates among single-parent households — from 15% in 2016 to 25% in 2018, well above the 10.7% overall rate of <a href="https://www.economicshelp.org/blog/glossary/definition-of-absolute-and-relative-poverty/">relative poverty</a>.</p>
<p>Given the devastating effects of COVID-19, we can expect the number of single-parent families that enter a cycle of poverty and entrenched disadvantage will only grow further.</p>
<p>It appears that even after the recent increase in subsidies, our childcare system is badly set up to help them find a way out.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/interactive-how-have-your-familys-fortunes-changed-use-this-drag-and-drop-tool-to-find-out-100818">Interactive: how have your family's fortunes changed? Use this drag-and-drop tool to find out</a>
</strong>
</em>
</p>
<hr>
<hr>
<p><em>This piece was co-published with the University of Melbourne’s <a href="https://pursuit.unimelb.edu.au/">Pursuit</a>.</em></p><img src="https://counter.theconversation.com/content/150362/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Barbara Broadway receives funding from the Australian Research Council for the Linkage Project "The Impact of Income Support Design for the Outcomes of Children and Youth" (ARC LP170100472).</span></em></p><p class="fine-print"><em><span>Esperanza Vera-Toscano does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The HILDA Survey suggests single-parent households on Australia are abandoning formal childcare as they face greater poverty rates.Barbara Broadway, Senior Research Fellow, Melbourne Institute of Applied Economic and Social Research, The University of MelbourneEsperanza Vera-Toscano, Senior research fellow, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1503632020-11-19T18:52:21Z2020-11-19T18:52:21ZAustralia, are you OK? Here are the groups with the highest (and lowest) life satisfaction<figure><img src="https://images.theconversation.com/files/369965/original/file-20201118-15-ul6ac9.jpg?ixlib=rb-1.1.0&rect=0%2C7%2C4866%2C3227&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Measuring the material factors of our lives — like finances, work, health — can tell us a lot about the state of Australian society, but what matters most to us?</p>
<p>To help answer this question, we need to know not just what people have and don’t have, but how they <em>feel</em> — what researchers call <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2162125">subjective well-being</a>.</p>
<p>The <a href="https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0009/3537441/HILDA-Statistical-report-2020.pdf">Household, Income and Labour Dynamics in Australia (HILDA) Survey</a> asks these questions of around 17,000 Australians every year. The <a href="https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0009/3537441/HILDA-Statistical-report-2020.pdf">latest report</a>, released today, shows that over almost two decades (2001-2018), Australians’ life satisfaction has been fairly constant at relatively high levels, driven by basic factors such as health, safety and social contact.</p>
<p>But there are gaps. Unemployed people, immigrants from non-English speaking countries and Indigenous Australians generally all fare worse than other Australians.</p>
<p>Combined with the reduced satisfaction that comes from unemployment, the data is a warning the economic and social cost of controlling the COVID-19 pandemic is likely to have significantly hurt many Australians’ sense of well-being.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/hilda-survey-reveals-striking-gender-and-age-divide-in-financial-literacy-test-yourself-with-this-quiz-100451">HILDA Survey reveals striking gender and age divide in financial literacy. Test yourself with this quiz</a>
</strong>
</em>
</p>
<hr>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/370007/original/file-20201118-19-1j7tva4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A cafe sign states it is closed due to coronavirus." src="https://images.theconversation.com/files/370007/original/file-20201118-19-1j7tva4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/370007/original/file-20201118-19-1j7tva4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=337&fit=crop&dpr=1 600w, https://images.theconversation.com/files/370007/original/file-20201118-19-1j7tva4.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=337&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/370007/original/file-20201118-19-1j7tva4.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=337&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/370007/original/file-20201118-19-1j7tva4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=424&fit=crop&dpr=1 754w, https://images.theconversation.com/files/370007/original/file-20201118-19-1j7tva4.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=424&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/370007/original/file-20201118-19-1j7tva4.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=424&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Combined with the reduced satisfaction that comes from unemployment, the data is warning that the well-being of many Australians is likely to have been significantly hurt this year.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
</figcaption>
</figure>
<h2>The youngest and oldest have the highest life satisfaction</h2>
<p>Life satisfaction, as one measure of subjective well-being, is measured in HILDA by asking Australians</p>
<blockquote>
<p>All things considered, how satisfied are you with your life overall?</p>
</blockquote>
<p>Responses range from 0 to 10 — the higher this score, the more satisfied a person is with their life as a whole.</p>
<p>Respondents were also asked to rate their satisfaction with different areas or domains of life, namely job, finances, housing, safety, leisure, and health.</p>
<p>Australians are generally quite satisfied with their lives. In 2018, for example, the average life satisfaction score was about 7.92 on the 0-10 scale. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/370207/original/file-20201118-23-7cg7sl.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A chart showing that in 2018, the average life satisfaction score was about 7.92 on the 0-10 scale." src="https://images.theconversation.com/files/370207/original/file-20201118-23-7cg7sl.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/370207/original/file-20201118-23-7cg7sl.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=392&fit=crop&dpr=1 600w, https://images.theconversation.com/files/370207/original/file-20201118-23-7cg7sl.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=392&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/370207/original/file-20201118-23-7cg7sl.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=392&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/370207/original/file-20201118-23-7cg7sl.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=493&fit=crop&dpr=1 754w, https://images.theconversation.com/files/370207/original/file-20201118-23-7cg7sl.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=493&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/370207/original/file-20201118-23-7cg7sl.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=493&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">In 2018, the average life satisfaction score was about 7.92 on the 0-10 scale.</span>
<span class="attribution"><span class="source">HILDA 2020</span></span>
</figcaption>
</figure>
<p>Women report consistently higher levels of life satisfaction compared to men (though this difference is very small), and this has remained consistent over the 18 years of HILDA. But women are less satisfied with leisure time than men, which may reflect the greater child caring burden on women.</p>
<p>There are also some age differences. As is common across the world, the youngest (15-24) and oldest (65 and over) have the highest life satisfaction, whereas Australians in the 35-44 and 45-54 age groups are consistently the least satisfied with their lives.</p>
<p>The HILDA results confirm a so-called “<a href="https://www.nber.org/papers/w26641?sy=641">U-shape</a>” relationship between age and life satisfaction, implying that life satisfaction is relatively high at younger ages, declines during middle age, and starts increasing again at a later stage.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/370208/original/file-20201118-20-kbklfy.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A chart showing life satisfaction is relatively high at younger ages, declines during middle age, and starts increasing again at a later stage." src="https://images.theconversation.com/files/370208/original/file-20201118-20-kbklfy.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/370208/original/file-20201118-20-kbklfy.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=473&fit=crop&dpr=1 600w, https://images.theconversation.com/files/370208/original/file-20201118-20-kbklfy.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=473&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/370208/original/file-20201118-20-kbklfy.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=473&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/370208/original/file-20201118-20-kbklfy.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=594&fit=crop&dpr=1 754w, https://images.theconversation.com/files/370208/original/file-20201118-20-kbklfy.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=594&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/370208/original/file-20201118-20-kbklfy.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=594&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Life satisfaction is relatively high at younger ages, declines during middle age, and starts increasing again at a later stage.</span>
<span class="attribution"><span class="source">HILDA 2020</span></span>
</figcaption>
</figure>
<h2>Health and safety: good for most but not all</h2>
<p>Health, unsurprisingly, seems to play an important role. People in poor general or mental health, and those with a disability, have substantially lower average life satisfaction than those without such health problems.</p>
<p>As might be expected, employed people have much lower satisfaction with their leisure time than those who are unemployed or not in the labour force. But regardless of gender, unemployed people are much less satisfied with life.</p>
<p>Indigenous and non-Indigenous Australians overall reported similar levels of life satisfaction in 2018, but there are relatively large differences in some important domains that suggests Indigenous Australians do worse. </p>
<p>Compared to non-Indigenous people, Indigenous Australians report lower satisfaction with finances, housing, and health.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/370005/original/file-20201118-13-cc81if.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A family play cricket in the back yard" src="https://images.theconversation.com/files/370005/original/file-20201118-13-cc81if.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/370005/original/file-20201118-13-cc81if.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/370005/original/file-20201118-13-cc81if.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/370005/original/file-20201118-13-cc81if.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/370005/original/file-20201118-13-cc81if.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/370005/original/file-20201118-13-cc81if.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/370005/original/file-20201118-13-cc81if.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Australians are generally quite satisfied with their lives.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
</figcaption>
</figure>
<p>Apart from health satisfaction, immigrants from non-English speaking countries report lower average well-being in all domains (including with life overall).</p>
<p>When we consider satisfaction in different life domains, Australian men and women are least satisfied with their finances, although financial satisfaction has been increasing somewhat over time.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/370209/original/file-20201118-21-xcljia.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Of the 'life domains' we asked about, Australians are most satisfied about their personal safety. But women are less satisfied with leisure time than men." src="https://images.theconversation.com/files/370209/original/file-20201118-21-xcljia.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/370209/original/file-20201118-21-xcljia.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=303&fit=crop&dpr=1 600w, https://images.theconversation.com/files/370209/original/file-20201118-21-xcljia.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=303&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/370209/original/file-20201118-21-xcljia.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=303&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/370209/original/file-20201118-21-xcljia.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=380&fit=crop&dpr=1 754w, https://images.theconversation.com/files/370209/original/file-20201118-21-xcljia.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=380&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/370209/original/file-20201118-21-xcljia.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=380&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Of the ‘life domains’ we asked about, Australians are most satisfied about their personal safety. But women are less satisfied with leisure time than men.</span>
<span class="attribution"><span class="source">HILDA 2020</span></span>
</figcaption>
</figure>
<p>Australians are most satisfied with their personal safety, and here as well safety satisfaction has exhibited an upward trend over time. Of note is that Australians’ satisfaction with health, although relatively high, has been on a slight downward trend over the past two decades.</p>
<h2>Life satisfaction</h2>
<p>Married people are more satisfied than those in other marital statuses. One interesting exception, however, is among women in de facto relationships, who are slightly more satisfied with life than married women.</p>
<p>Somewhat counter-intuitively, higher levels of education are related to lower reported life satisfaction. One possible <a href="https://www.semanticscholar.org/paper/Education%2C-job-aspirations-and-subjective-a-Jim%C3%A9nez-Jim%C3%A9nez/d14c34994703b4685d4fa90810ee1c41b7db2641">explanation</a> is the hypothesis that more educated persons have higher aspirations which, if not met, may have a detrimental effect on well-being.</p>
<p>Having children is associated with greater life satisfaction for men, but for women there is no relationship between children and life satisfaction. Again, this may in part reflect greater childcare responsibility and is also consistent with women’s lower leisure satisfaction.</p>
<p>People with a disability are especially more likely to report lower life satisfaction.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/over-50-of-young-australian-adults-still-live-with-their-parents-and-the-numbers-are-climbing-faster-for-women-120587">Over 50% of young Australian adults still live with their parents – and the numbers are climbing faster for women</a>
</strong>
</em>
</p>
<hr>
<p>Having regular social contact and social relationships leads to higher life satisfaction for both men and women, underscoring the importance of maintaining social ties.</p>
<p>The social restrictions imposed to control COVID-19 this year therefore likely had a detrimental effect on the well-being of many Australians, especially in Melbourne.</p>
<p>For both women and men, having higher household income is related to greater life satisfaction, but the effect is pretty small. So, life satisfaction is not just about money.</p>
<p>For women there is no relationship between region of residence and life satisfaction, but men living in major urban areas are much less satisfied with life compared to men living in non-urban areas.</p>
<p>For all Australians, regardless of age or gender, changes in health satisfaction lead to the largest changes in life satisfaction. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/370206/original/file-20201118-19-95ew48.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A woman walks alone in a street." src="https://images.theconversation.com/files/370206/original/file-20201118-19-95ew48.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/370206/original/file-20201118-19-95ew48.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/370206/original/file-20201118-19-95ew48.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/370206/original/file-20201118-19-95ew48.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/370206/original/file-20201118-19-95ew48.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/370206/original/file-20201118-19-95ew48.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/370206/original/file-20201118-19-95ew48.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Australians are most satisfied about their personal safety, and here as well safety satisfaction has exhibited an upward trend over time.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
</figcaption>
</figure>
<p>After health satisfaction, people’s satisfaction with personal safety is also associated with large increases in overall life satisfaction.</p>
<p>These findings imply basic needs such as being healthy and feeling safe are some of the most important contributors to overall well-being.</p>
<h2>What policies and services do we need?</h2>
<p>For the most part, the average Australian is doing very well. Overall life satisfaction is generally high, and satisfaction with safety and housing rank among the highest scored domain satisfactions, suggesting most Australians are very satisfied with the provision of their basic needs.</p>
<p>But it is clear the unemployed have very low levels of well-being in most life domains. Subjective well-being is also quite low among immigrants from non-English speaking countries, as well as among Indigenous Australians.</p>
<p>These observations stress the importance of a strong emphasis on factors like job creation and skills development for unemployed people, additional support for immigrants and continued emphasis on Indigenous well-being.</p>
<p>Because health satisfaction is the strongest predictor of overall life satisfaction in Australia, improvements in individual health circumstances are likely to filter through into greater overall life satisfaction.</p>
<p>Finally, the data on Australians suffering from poor health — physical, mental, and those with a disability — signal that the efficient and effective provision of health services to those most in need is paramount.</p>
<hr>
<p><em>This piece was co-published with the University of Melbourne’s <a href="https://pursuit.unimelb.edu.au/">Pursuit</a>.</em></p><img src="https://counter.theconversation.com/content/150363/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ferdi Botha does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Australians report high levels of life satisfaction but there are gaps — Indigenous Australians, immigrants and the unemployed fare worse. And COVID-19 won’t have helped.Ferdi Botha, Research Fellow, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1435492020-07-29T19:57:31Z2020-07-29T19:57:31ZWhy young people are earning less<figure><img src="https://images.theconversation.com/files/350143/original/file-20200729-25-1s7ukzi.jpg?ixlib=rb-1.1.0&rect=469%2C196%2C3265%2C1551&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>That COVID is hurting young workers more than older ones is <a href="https://theconversation.com/the-next-employment-challenge-from-coronavirus-how-to-help-the-young-135676">widely recognised</a>.</p>
<p>What’s less well known is that even before COVID-19, in the decade leading up to it, incomes for young people (aged 15 to 34) were falling in real terms while incomes for others continued to climb.</p>
<p>A graph that was created by the Productivity Commission for this morning’s report, <a href="https://www.pc.gov.au/research/completed/youth-income-decline">Why did young people’s incomes decline</a>? tells the story.</p>
<p>The report follows Monday’s report on declining <a href="https://theconversation.com/it-really-is-different-for-young-people-its-harder-to-climb-the-jobs-ladder-143347">job mobility</a> for young people.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/350113/original/file-20200729-21-e1xs1z.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/350113/original/file-20200729-21-e1xs1z.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/350113/original/file-20200729-21-e1xs1z.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=376&fit=crop&dpr=1 600w, https://images.theconversation.com/files/350113/original/file-20200729-21-e1xs1z.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=376&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/350113/original/file-20200729-21-e1xs1z.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=376&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/350113/original/file-20200729-21-e1xs1z.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=473&fit=crop&dpr=1 754w, https://images.theconversation.com/files/350113/original/file-20200729-21-e1xs1z.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=473&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/350113/original/file-20200729-21-e1xs1z.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=473&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">In real terms; adjusted by the consumer price index.</span>
<span class="attribution"><a class="source" href="https://www.pc.gov.au/research/completed/youth-income-decline">Commission estimates based on HILDA data</a></span>
</figcaption>
</figure>
<p>Disposable incomes are incomes after tax. The graph shows that in the years immediately after the Melbourne Institute’s HILDA Household Income and Labour Dynamics in Australia survey began asking the question, the real incomes of young Australians climbed in line with those of older Australians.</p>
<p>In the decade since 2008 they’ve gone backwards. Jennifer Rayner’s book <a href="https://www.blackincbooks.com.au/books/generation-less">Generation Less</a> noted that the living standards of young and old were beginning to pull apart in ways that would strain common bonds. </p>
<p>Last year’s <a href="https://grattan.edu.au/report/generation-gap/">Grattan Institute</a> report said today’s young were in danger of being the first generation in memory to have lower living standards than their parents.</p>
<p>Where the Productivity Commission study substantially advances our understanding is by presenting a detailed analysis of why incomes of the young have declined.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/it-really-is-different-for-young-people-its-harder-to-climb-the-jobs-ladder-143347">It really is different for young people: it's harder to climb the jobs ladder</a>
</strong>
</em>
</p>
<hr>
<p>It finds that young people’s real incomes have fallen since the global financial crisis mainly because they have fared worse in the job market.</p>
<p>Income can come from three sources – labour income, transfer income (government payments), and other income (which includes payments from non-resident parents and investment and business income). </p>
<p>The report finds that about three-quarters of the fall in real incomes of the young has been due to a decrease in their labour incomes (with the rest being due to a fall in other incomes).</p>
<h2>Lower wage jobs, lower hours</h2>
<p>The decline in labour income for the young is a result of both slower growth in hourly wages and of them working fewer hours. Hours of work have decreased as the young have shifted away from full-time towards part-time work. </p>
<p>With this shift has been a move to working for smaller firms, where wages are typically lower.</p>
<p>The next big question is what has caused the decline in labour incomes for the young.</p>
<figure class="align-right ">
<img alt="" src="https://images.theconversation.com/files/350139/original/file-20200729-29-9rtvx5.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/350139/original/file-20200729-29-9rtvx5.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=844&fit=crop&dpr=1 600w, https://images.theconversation.com/files/350139/original/file-20200729-29-9rtvx5.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=844&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/350139/original/file-20200729-29-9rtvx5.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=844&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/350139/original/file-20200729-29-9rtvx5.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1061&fit=crop&dpr=1 754w, https://images.theconversation.com/files/350139/original/file-20200729-29-9rtvx5.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1061&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/350139/original/file-20200729-29-9rtvx5.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1061&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption"></span>
<span class="attribution"><a class="source" href="https://www.pc.gov.au/research/completed/youth-income-decline">Why did young people's incomes decline? </a></span>
</figcaption>
</figure>
<p>Here, the Productivity Commission comes to the conclusion that it’s all about demand and supply. </p>
<p>Earlier work by Reserve Bank economists <a href="https://www.rba.gov.au/publications/bulletin/2018/jun/labour-market-outcomes-for-younger-people.html">Natasha Cassidy and Zhoya Dhillion</a> and my own work <a href="https://drive.google.com/file/d/1HW_6fwNxfP3VvRcol83t9A14SzciuiCA/view">with Michael Coelli</a> arrived at the same conclusion.</p>
<p>Since the early 1990s the proportion of the population wanting to work (the so-called participation rate) has been climbing.</p>
<p>Before 2008 and the global financial crisis that increase was outpaced by growth in the number of available jobs. Following the crisis the pattern reversed.</p>
<p>That has been bad news for the young. With the number of people wanting to work increasing faster than the number of available jobs, something had to give. It happened to be young people starting out in the labour market. </p>
<p>They found themselves crowded out from work and from the type of jobs they wanted (including full-time jobs) and having to accept lower-paid ones, with what turned out to be a a lower likelihood of later moving to a better job. </p>
<h2>And less success at business</h2>
<p>If all you knew was that young people’s income from paid work had declined, you might not be too worried. With all the high-tech start-ups involving young people, they must surely be able to make up those losses by striking out on their own and earning profits and business income.</p>
<p>The quashing of that idea is to my way of thinking one of the important findings of the Productivity Commission report. </p>
<p>It shows shows a large decrease rather than an increase in business income for the young, at a time when the business income of older Australians continued to climb.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/350135/original/file-20200729-25-vow0aq.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/350135/original/file-20200729-25-vow0aq.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/350135/original/file-20200729-25-vow0aq.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=398&fit=crop&dpr=1 600w, https://images.theconversation.com/files/350135/original/file-20200729-25-vow0aq.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=398&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/350135/original/file-20200729-25-vow0aq.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=398&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/350135/original/file-20200729-25-vow0aq.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=500&fit=crop&dpr=1 754w, https://images.theconversation.com/files/350135/original/file-20200729-25-vow0aq.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=500&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/350135/original/file-20200729-25-vow0aq.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=500&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><a class="source" href="https://www.pc.gov.au/research/completed/youth-income-decline">Commission estimates based on HILDA data</a></span>
</figcaption>
</figure>
<p>The decrease happened both because after the global financial crisis young people were less likely to earn business income and because when they did it was more likely to come from low-paying industries. </p>
<p>Its a concerning finding for a nation pinning hopes on entrepreneurship, and an instance of where the report repays careful reading.</p>
<h2>Lessons for COVID</h2>
<p>It might seem as if analysing events in the decade after the global financial crisis is akin to studying ancient history, with the new COVID-19 labour market telling us more about what’s happening. </p>
<p>Nothing could be further from the truth. </p>
<p>Because it is about what happens to young people in a weakened labour market, the Commission’s report is replete with lessons for today.</p>
<p>It provides new perspectives on how the young are adversely affected, it tells us about how income support can help, and offers insights into how to make entrepreneurship better.</p>
<p>And it establishes unambiguously the case for worrying about the young in the time of COVID-19, all the more so because of what has happened in the leadup to it.</p><img src="https://counter.theconversation.com/content/143549/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jeff Borland was a referee for the Productivity Commission report, but has not received any payment for that role. He receives funding from the Australian Research Council.</span></em></p>It isn’t only because they are in worse jobs. it’s also because they are earning less from businesses.Jeff Borland, Professor of Economics, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1409432020-06-19T03:19:08Z2020-06-19T03:19:08ZYoung women are hit doubly hard by recessions, especially this one<figure><img src="https://images.theconversation.com/files/342885/original/file-20200619-41204-1a6l3z4.jpg?ixlib=rb-1.1.0&rect=436%2C333%2C2308%2C1210&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>We are entering our first pink-tinged recession. </p>
<p>The official unemployment figures released on Thursday confirmed that female work has has been more heavily impacted than male work. </p>
<p>Since February 457,517 women have lost their jobs and 380,737 men.</p>
<p>The disparity is likely to be worse when JobKeeper ends. The jobs at risk are concentrated in <a href="https://theconversation.com/which-jobs-are-most-at-risk-from-the-coronavirus-shutdown-134680">female-dominated industries</a>. </p>
<hr>
<p><strong>Employed Australians, total</strong></p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/342630/original/file-20200618-41221-6q42rs.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/342630/original/file-20200618-41221-6q42rs.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/342630/original/file-20200618-41221-6q42rs.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=307&fit=crop&dpr=1 600w, https://images.theconversation.com/files/342630/original/file-20200618-41221-6q42rs.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=307&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/342630/original/file-20200618-41221-6q42rs.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=307&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/342630/original/file-20200618-41221-6q42rs.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=386&fit=crop&dpr=1 754w, https://images.theconversation.com/files/342630/original/file-20200618-41221-6q42rs.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=386&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/342630/original/file-20200618-41221-6q42rs.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=386&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Includes Australians regarded as still employed because they are on JobKeeper.</span>
<span class="attribution"><a class="source" href="https://www.abs.gov.au/ausstats/abs@.nsf/mf/6202.0">ABS 6202.0</a></span>
</figcaption>
</figure>
<hr>
<p>This might be thought to be reason enough for the government to focus its recovery efforts on supporting female jobs rather than “shovel ready” male-dominated jobs such as those in the construction industry.</p>
<p>But there’s another reason.</p>
<p>Women report poorer mental health than men. When responding to Australia’s Household Income and Labour Dynamics (<a href="https://melbourneinstitute.unimelb.edu.au/hilda">HILDA</a>) survey 20% of women report having diagnosed depression or anxiety, compared with 13% of men.</p>
<h2>Young women suffer doubly</h2>
<p>Using almost twenty years of HILDA data (2001-2018) we have compared changes in people’s mental health in locations that are experiencing increased unemployment with changes in other times and locations, controlling for other things that might effect mental health.</p>
<p>Women in their early-20’s and mid-40’s are more affected by local economic downturns than men.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/theres-a-reason-youre-feeling-no-better-off-than-10-years-ago-heres-what-hilda-says-about-well-being-121098">There's a reason you're feeling no better off than 10 years ago. Here's what HILDA says about well-being</a>
</strong>
</em>
</p>
<hr>
<p>These ages are the ones in which women’s involvement in the labour market is the highest – just before and after having children.</p>
<p>The graph below shows that for women in their early-20’s every one percentage point increase in the unemployment rate is estimated to increase the number of women with poor mental health by about 7%. </p>
<hr>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/342886/original/file-20200619-41238-m0fh76.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/342886/original/file-20200619-41238-m0fh76.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/342886/original/file-20200619-41238-m0fh76.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=304&fit=crop&dpr=1 600w, https://images.theconversation.com/files/342886/original/file-20200619-41238-m0fh76.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=304&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/342886/original/file-20200619-41238-m0fh76.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=304&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/342886/original/file-20200619-41238-m0fh76.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=382&fit=crop&dpr=1 754w, https://images.theconversation.com/files/342886/original/file-20200619-41238-m0fh76.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=382&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/342886/original/file-20200619-41238-m0fh76.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=382&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><a class="source" href="https://melbourneinstitute.unimelb.edu.au/hilda">Authors calculations from HILDA data</a></span>
</figcaption>
</figure>
<hr>
<p>This suggests that an increase in the unemployment rate from about 5% in February to the peak of 10% <a href="https://theconversation.com/the-reserve-bank-thinks-the-recovery-will-look-v-shaped-there-are-reasons-to-doubt-it-138213">forecast by the Reserve Bank</a> could increase the number of young women with poor mental health by about 33%. </p>
<p>It would increase the number of young men with poor mental health by about 20%.</p>
<h2>Searching for explanations</h2>
<p>It might be that because women typically spend <a href="https://home.kpmg/au/en/home/insights/2019/08/gender-pay-gap-economics.html">fewer</a> active years in the labour market, the effect of unemployment in those years is more devastating. </p>
<p>A spell out of the workforce with children after a spell out of the workforce with unemployment means a woman who lost her job during a recession might never obtain the lifetime earnings she would have expected.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/women-are-drinking-more-during-the-pandemic-and-its-probably-got-a-lot-to-do-with-their-mental-health-139295">Women are drinking more during the pandemic, and it's probably got a lot to do with their mental health</a>
</strong>
</em>
</p>
<hr>
<p>Further analysis of the HILDA data supports this contention. Among young women the association between unemployment and poor mental health is much stronger for those that would like to have children.</p>
<p>Women in their mid 40’s (who are often trying to re-enter the work force after focusing on children) are also much more prone to poor mental health than men during downturns, perhaps because it’s their last chance to build up lifetime earnings.</p>
<h2>We need a two-pronged approach</h2>
<p>Australia’s last recession, in the early 1990s, hit the jobs of men much harder than those of women. This recession looks different. Women are being hurt more than men, and the effects on the mental health of women aged in their early 20s and early 40s will amplify the difference.</p>
<p>The right approach is to ensure recovery programs are directed towards industries that employ women, and to boost funding for mental health care, especially programs designed for women. </p>
<p>The Royal Commission into <a href="https://rcvmhs.vic.gov.au/">Victoria’s mental health care system</a> found it “failed to aid those who are most in need of high-quality treatment, care and support”. </p>
<p>It isn’t a good start.</p><img src="https://counter.theconversation.com/content/140943/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Angela Jackson is a Board Member at Melbourne Health, which operates North Western Mental Health and also sits on the Board of GenVic which aims to achieve gender equity in Victoria.</span></em></p><p class="fine-print"><em><span>Nicole Black receives funding from the Australian Research Council Discovery Early Career Researcher Award and Discovery Project. She has previously received research grant funding from the Victorian Responsible Gambling Foundation.</span></em></p><p class="fine-print"><em><span>David Johnston does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The mental health of young women is far more sensitive to unemployment than the mental health of young men.Angela Jackson, PhD Candidate, Monash UniversityDavid Johnston, Professor of Health Economics, Monash UniversityNicole Black, Associate Professor, Centre for Health Economics, Monash UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1372362020-05-20T20:04:24Z2020-05-20T20:04:24ZRecessions scar young people their entire lives, even into retirement<figure><img src="https://images.theconversation.com/files/336310/original/file-20200520-152284-of2g5h.jpg?ixlib=rb-1.1.0&rect=461%2C383%2C3455%2C2275&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>It is well-established that recessions hit young people the hardest.</p>
<p>We saw it in our early 1980s recession, our early 1990s recession, and in the one we are now entering. </p>
<p>The latest <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/6160.0.55.001Main%20Features4Week%20ending%202%20May%202020">payroll data</a> shows that for most age groups, employment fell 5% to 6% between mid-March and May. For workers in their 20s, it fell 10.7%</p>
<p>The most dramatic divergence in the fortunes of young and older Australians came in the mid 1970s recession when the unemployment rate for those aged 15-19 shot up from 4% to 10% in the space of one year. A year later it was 12%, and 15% a year after that. </p>
<hr>
<p><strong>Unemployment rates 1971-1977</strong></p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/336271/original/file-20200520-152288-16b5n6o.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/336271/original/file-20200520-152288-16b5n6o.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/336271/original/file-20200520-152288-16b5n6o.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=303&fit=crop&dpr=1 600w, https://images.theconversation.com/files/336271/original/file-20200520-152288-16b5n6o.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=303&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/336271/original/file-20200520-152288-16b5n6o.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=303&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/336271/original/file-20200520-152288-16b5n6o.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=381&fit=crop&dpr=1 754w, https://images.theconversation.com/files/336271/original/file-20200520-152288-16b5n6o.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=381&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/336271/original/file-20200520-152288-16b5n6o.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=381&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><a class="source" href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/6203.0">ABS 6203.0</a></span>
</figcaption>
</figure>
<hr>
<p>At the time, 15 to 19 years of age was when young people got jobs. Only one third completed Year 12. </p>
<p>What is less well known is how long the effects lasted. They seem to be present more than 40 years later.</p>
<p>The Australians who were 15 to 19 years old at the time of the mid-1970s recession were born in the early 1960s.</p>
<p>In almost every recent <a href="http://positivepsychology.org.uk/subjective-well-being/">subjective well-being</a> survey they have performed worse that those born before or after that period. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/theres-a-reason-youre-feeling-no-better-off-than-10-years-ago-heres-what-hilda-says-about-well-being-121098">There's a reason you're feeling no better off than 10 years ago. Here's what HILDA says about well-being</a>
</strong>
</em>
</p>
<hr>
<p>Subjective well-being is determined by asking respondents how satisified they are with their lives on a scale of 0 to 10, where 0 is totally dissatisfied and 10 is totally satisfied.</p>
<p>Australia’s Household, Income and Labour Dynamics survey (<a href="https://melbourneinstitute.unimelb.edu.au/hilda">HILDA</a>) has been asking the question since 2001.</p>
<p>In order to fairly compare the life satisfaction of different generations it is necessary to adjust the findings to compensate for other things known to affect satisfaction including income, gender, marital status, education and employment status.</p>
<p>Doing that and selecting the 2001, 2006, 2011 and 2016 surveys to examine how children born at the start of the 1960s have fared relative to those born earlier and later, shows that regardless of their age at the time of the survey, they are less satisfied than those born at other times.</p>
<hr>
<p><strong>Subjective wellbeing by birth cohort over four HILDA surveys</strong></p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/336287/original/file-20200520-152311-h03y48.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/336287/original/file-20200520-152311-h03y48.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/336287/original/file-20200520-152311-h03y48.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=314&fit=crop&dpr=1 600w, https://images.theconversation.com/files/336287/original/file-20200520-152311-h03y48.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=314&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/336287/original/file-20200520-152311-h03y48.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=314&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/336287/original/file-20200520-152311-h03y48.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=395&fit=crop&dpr=1 754w, https://images.theconversation.com/files/336287/original/file-20200520-152311-h03y48.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=395&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/336287/original/file-20200520-152311-h03y48.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=395&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Subjective well-being on a scale of 0 to 10 where 0 is totally dissatisfied and 10 is totally satisfied.</span>
<span class="attribution"><a class="source" href="https://melbourneinstitute.unimelb.edu.au/hilda">Regressions available upon request</a></span>
</figcaption>
</figure>
<hr>
<p>The consistency of lower levels of subjective well-being reported by the 1961-1965 birth cohort suggests something has had a lasting effect.</p>
<p>An obvious candidate is the dramatic increase in the rate of youth unemployment in at the time many of this age group were trying to get a job.</p>
<p>Over time, labour markets can recover but the scars of entering the labour market during a time of sudden high unemployment can be permanent.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/the-next-employment-challenge-from-coronavirus-how-to-help-the-young-135676">The next employment challenge from coronavirus: how to help the young</a>
</strong>
</em>
</p>
<hr>
<p>The impacts of the early 1980s and early 1990s recessions on young people were alleviated somewhat by the doubling of the <a href="https://www.abs.gov.au/ausstats/abs@.nsf/mf/4220.0">Year 12 retention rate</a> and later by the doubling of <a href="https://www.education.gov.au/student-data">university enrolments</a>. </p>
<p>But the education sector is maxed out and might not be able to perform the same trick for the third recession in a row.</p>
<p>Reinvigorating apprenticeships and providing cadetships for non-trade occupations might help. Otherwise the effects of the 2020 recession on an unlucky group of Australians might stay with us for a very long time.</p><img src="https://counter.theconversation.com/content/137236/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jenny Chesters is affiliated with Australian Labor Party. I am a branch member</span></em></p>Four decades on, and commencing retirement, Australians who entered the labour market during the 1970s recession are less happy than those born earlier or later.Jenny Chesters, Senior Lecturer/ Research Fellow, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1208242019-07-29T20:24:47Z2019-07-29T20:24:47ZMore Australians are diagnosed with depression and anxiety but it doesn’t mean mental illness is rising<figure><img src="https://images.theconversation.com/files/285668/original/file-20190725-136786-e0gw4r.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Women are almost twice as likely to be diagnosed with depression or anxiety as men.</span> <span class="attribution"><a class="source" href="https://unsplash.com/photos/akT1bnnuMMk">Eric Ward</a></span></figcaption></figure><p>Diagnoses of depression and anxiety disorders have risen dramatically over the past eight years. That’s according to new data out today from the <a href="https://melbourneinstitute.unimelb.edu.au/hilda">Housing Income and Labour Dynamics (HILDA) Survey</a>, which tracks the lives of 17,500 Australians. </p>
<p>The increase spans across all age groups, but is most notably in young people. </p>
<p>The percentage of young women (aged 15-34) who had been diagnosed with these conditions increased from 12.8% in 2009, to 20.1% in 2017. </p>
<p><iframe id="gBi8a" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/gBi8a/3/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<p>In young men, there was a similar increase, from 6.1% to 11.2%. </p>
<p><iframe id="X7qbd" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/X7qbd/3/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<p>But this doesn’t mean Australians’ mental health is worsening.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/explainer-what-is-an-anxiety-disorder-8206">Explainer: what is an anxiety disorder?</a>
</strong>
</em>
</p>
<hr>
<h2>What’s behind the numbers?</h2>
<p>HILDA surveys collate data on the “reported diagnosis” of depression and anxiety disorders. Many people with these conditions have remained undiagnosed by a health practitioner, so it could simply be a matter of more people seeking professional help and getting diagnosed.</p>
<p>To find out whether there is a real increase, we need to survey a sample of the public about their symptoms rather than ask about whether they have been diagnosed. This has been done for almost two decades in the <a href="https://www.abs.gov.au/ausstats/abs@.nsf/mf/4364.0.55.001">National Health Survey</a>. </p>
<p>This graph shows the percentage of the population reporting very high levels of depression and anxiety symptoms over the previous month, from 2001 to 2017-18. </p>
<p><iframe id="aZ3ri" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/aZ3ri/3/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<p>Rather than worsening, the nation’s mental health has been steady over this period.</p>
<h2>Shouldn’t our mental health be improving?</h2>
<p>So it seems while our mental health is not getting worse, we are more likely to get diagnosed. With increased diagnosis, it’s no surprise Australians have been rapidly embracing treatments for mental-health problems. </p>
<p>Antidepressant use has been rising for decades, with Australians now among the <a href="https://www.oecd.org/australia/Health-at-a-Glance-2015-Key-Findings-AUSTRALIA.pdf">world’s highest users</a>. One in ten Australian adults take an <a href="https://www.mja.com.au/journal/2016/204/9/unfulfilled-promise-antidepressant-medications">antidepressant each day</a>. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/if-youre-coming-off-antidepressants-withdrawals-and-setbacks-may-be-part-of-the-process-114179">If you're coming off antidepressants, withdrawals and setbacks may be part of the process</a>
</strong>
</em>
</p>
<hr>
<p>Psychological treatment has also <a href="https://journals.sagepub.com/doi/abs/10.1177/0004867418804066?rfr_dat=cr_pub%3Dpubmed&url_ver=Z39.88-2003&rfr_id=ori%3Arid%3Acrossref.org&journalCode=anpa">skyrocketed</a>, particularly after the Australian government introduced Medicare coverage for psychology services in 2006. There are now around 20 psychology services per year for every 100 Australians.</p>
<p>The real concern is why we’re not seeing any benefit from these large increases in diagnosis and treatment. In theory, our mental health should be improving. </p>
<p>There are two likely reasons for the lack of progress: the treatments are often not up to standard and we have neglected prevention.</p>
<h2>Treatment is often poor quality</h2>
<p>A number of treatments <a href="https://resources.beyondblue.org.au/prism/file?token=BL/0556">work for depression and anxiety disorders</a>. However, what Australians receive in practice <a href="https://journals.sagepub.com/doi/abs/10.1177/0004867415606224?rfr_dat=cr_pub%3Dpubmed&url_ver=Z39.88-2003&rfr_id=ori%3Arid%3Acrossref.org&journalCode=anpa">falls far short</a> of the ideal.</p>
<p>Antidepressants, for example, are most appropriate for severe depression, but are <a href="https://journals.sagepub.com/doi/abs/10.1046/j.1440-1614.2003.01132.x?rfr_dat=cr_pub%3Dpubmed&url_ver=Z39.88-2003&rfr_id=ori%3Arid%3Acrossref.org&journalCode=anpa">often used</a> to treat people with mild symptoms that reflect difficult life circumstances.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/285670/original/file-20190725-136737-1m9jvma.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/285670/original/file-20190725-136737-1m9jvma.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=401&fit=crop&dpr=1 600w, https://images.theconversation.com/files/285670/original/file-20190725-136737-1m9jvma.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=401&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/285670/original/file-20190725-136737-1m9jvma.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=401&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/285670/original/file-20190725-136737-1m9jvma.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/285670/original/file-20190725-136737-1m9jvma.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/285670/original/file-20190725-136737-1m9jvma.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">It takes more than a couple of sessions with a psychologist to treat a mental health disorder.</span>
<span class="attribution"><a class="source" href="https://unsplash.com/photos/KQfxVDHGCUg">Kylli Kittus</a></span>
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<p>Psychological treatments can be effective, but require many sessions. <a href="https://www.mja.com.au/journal/2016/204/9/better-access-and-equitable-access-clinical-psychology-services-what-do-we-need">Around 16 to 20 sessions</a> are recommended to treat depression. Getting a couple of sessions with a psychologist is too often the norm and unlikely to produce much improvement.</p>
<p>Treatments are also not distributed to the people most in need. The <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/4329.0.00.003%7E2011%7EMain%20Features%7EAntidepressants%7E10008">biggest users of antidepressants</a> are older people, whereas <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/4364.0.55.001%7E2017-18%7EMain%20Features%7EMental%20and%20behavioural%20conditions%7E70">younger people are more likely to experience</a> severe depression.</p>
<p>Similarly, people in wealthier areas are <a href="https://onlinelibrary.wiley.com/doi/abs/10.5694/mja14.00330?sid=nlm%3Apubmed">more likely to get psychological therapy</a>, but depression and anxiety disorders are more common in poorer areas.</p>
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Read more:
<a href="https://theconversation.com/when-its-easier-to-get-meds-than-therapy-how-poverty-makes-it-hard-to-escape-mental-illness-114505">When it's easier to get meds than therapy: how poverty makes it hard to escape mental illness</a>
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<h2>Prevention is neglected</h2>
<p>The big area of neglect in mental health is prevention. Australia achieved enormous gains in physical health during the 20th century, with <a href="https://www.aihw.gov.au/reports/life-expectancy-death/deaths-in-australia/contents/trends-in-deaths">big drops in premature death</a>. Prevention of disease and injury played a major role in these gains. </p>
<p>We might expect a similar approach to work for mental-health problems, which are the next frontier for improving the nation’s health. However, while we have been putting increasing resources into treatment, prevention has been neglected. </p>
<p>There is now good evidence that prevention of mental-health problems is possible and that it <a href="https://journals.sagepub.com/doi/full/10.1177/0004867414546387">makes good economic sense</a>. For every dollar invested on school-based interventions to reduce bullying, for instance, there is an <a href="http://eprints.lse.ac.uk/39300/1/Mental_health_promotion_and_mental_illness_prevention%28author%29.pdf">estimated economic return of $14</a>.</p>
<p>Much could to be done to reduce the <a href="https://journals.sagepub.com/doi/abs/10.1177/0004867418761581?rfr_dat=cr_pub%3Dpubmed&url_ver=Z39.88-2003&rfr_id=ori%3Arid%3Acrossref.org&journalCode=anpa">major risk factors for mental-health problems</a> which occur during childhood and increase risk right across the lifespan. </p>
<p>Parents who are in conflict with each other and fight a lot, for example, may increase their children’s risk for depression and anxiety disorders, while parents who show warmth and affection towards their children decrease their risk. <a href="https://mental.jmir.org/2017/4/e59/">Parents can be trained</a> to reduce these risk factors and increase protective factors. </p>
<p>Yet successive Australian governments have lacked the political will to invest in prevention.</p>
<h2>Where to next?</h2>
<p>There is an important opportunity to consider whether Australia should be heading in a very different direction in its approach to mental health. The Australian government has asked the Productivity Commission to <a href="https://www.pc.gov.au/inquiries/current/mental-health#draft">investigate mental health</a>. </p>
<p>While we’ve had many previous inquiries, this one is different because it’s looking at the social and economic benefits of mental health to the nation. This broader perspective is important because action on prevention is a whole-of-government concern with resource implications and benefits that extend well beyond the health sector. </p>
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<strong>
Read more:
<a href="https://theconversation.com/theres-a-reason-youre-feeling-no-better-off-than-10-years-ago-heres-what-hilda-says-about-well-being-121098">There's a reason you're feeling no better off than 10 years ago. Here's what HILDA says about well-being</a>
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<img src="https://counter.theconversation.com/content/120824/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Anthony Jorm receives funding from the National Health and Medical Research Council. He is a Chief Investigator on the Centre for Research Excellence on Childhood Adversity and Mental Health. He is Chair of the Scientific Advisory Committee of Prevention United, Chair of the Board of Mental Health First Aid International, a member of the Alliance for Prevention of Mental Disorders and a member of the Association for Psychological Science. </span></em></p>Around 20% of young Australian women had a diagnosis of depression or anxiety in 2017 compared with 12.8% in 2009. But the proportion of people reporting significant symptoms has remained stable.Anthony Jorm, Professor emeritus, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1205872019-07-29T20:24:37Z2019-07-29T20:24:37ZOver 50% of young Australian adults still live with their parents – and the numbers are climbing faster for women<figure><img src="https://images.theconversation.com/files/285970/original/file-20190729-43136-vp0uw3.jpg?ixlib=rb-1.1.0&rect=33%2C0%2C7315%2C4912&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">More than 60% of Victorian young adults live with their parents, followed by 56% in New South Wales and about 53% in the other four states. In Queensland, the proportion of young adults living at home rose from 31% in 2001 to 52% in 2017.</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>The <a href="https://melbourneinstitute.unimelb.edu.au/hilda/publications/hilda-statistical-reports">latest Housing Income and Labour Dynamics (HILDA) Survey data</a> confirm a sustained trend towards young adults staying in the family home longer.</p>
<p>The HILDA Survey tells the story of the same group of Australians over the course of their lives. Starting in 2001, the survey now tracks more than 17,500 people in 9,500 households.</p>
<p>In 2017, 56% of men aged 18 to 29 lived with one or both parents, up from 47% in 2001. More strikingly, over the same period, the proportion of women aged 18 to 29 living with their parents rose from 36% to 54%.</p>
<img src="https://cdn.theconversation.com/static_files/files/668/young-people.gif?1564108309" width="100%">
<p>Growth has been particularly strong among women in their early to mid 20s. For example, in 2001, 30% of women aged 22 to 25 were living in the parental home, while in 2017, 58% were doing so. In other words, the gap between young women and young men is shrinking.</p>
<p>Traditionally, women have partnered and had children at younger ages than men. That’s linked to the fact that women are more likely, on average, to leave the parental home at a younger age than men.</p>
<p>The tendency for women to marry and have children at younger ages still exists, but it no longer translates to a greater propensity of young adult women to be living apart from their parents.</p>
<p>So what’s the average age that young people move out? It’s complicated. In our report, we did consider the average age of moving out – but looking at it this way means you’re only considering young adults who have <em>already</em> moved out. For women, this was 22.1 in 2001 and 24.2 in 2017. For men, it was 23.1 in 2001 and 23.5 in 2017. </p>
<p>But this doesn’t accurately convey the magnitude of change. A growing proportion of young adults have not moved out at all. Consequently, the average age of moving out is considerably higher and has grown more than these numbers suggest.</p>
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Read more:
<a href="https://theconversation.com/hilda-survey-reveals-striking-gender-and-age-divide-in-financial-literacy-test-yourself-with-this-quiz-100451">HILDA Survey reveals striking gender and age divide in financial literacy. Test yourself with this quiz</a>
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<h2>Rate is high in Victoria, growing fast in Queensland</h2>
<p>The trend is happening right across the country, although there are regional differences. </p>
<p>Comparing across the states, over 60% of Victorian young adults live with their parents, followed by 56% in New South Wales and approximately 53% in the other four states. </p>
<p>However, Queensland has experienced higher growth compared with most of the rest of the country, the proportion of young adults living at home rising from 31% in 2001 to 52% in 2017.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/285977/original/file-20190729-43149-1y20m5o.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/285977/original/file-20190729-43149-1y20m5o.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/285977/original/file-20190729-43149-1y20m5o.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/285977/original/file-20190729-43149-1y20m5o.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/285977/original/file-20190729-43149-1y20m5o.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/285977/original/file-20190729-43149-1y20m5o.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/285977/original/file-20190729-43149-1y20m5o.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/285977/original/file-20190729-43149-1y20m5o.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">A growing proportion of young adults have not moved out at all.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
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<h2>Moving out is more likely if you’re young in a small town</h2>
<p>Looking at the country versus the city, the propensity to be living in the parental home is, perhaps surprisingly, relatively similar in non-urban areas compared with the major cities. </p>
<p>It is towns and cities of less than 100,000 that stand out as having lower rates of living with one’s parents. This is consistent with housing costs being lower in those regions compared with the major urban centres.</p>
<p>Housing costs are also relatively low in non-urban areas, so you might think that the proportion of young adults living with their parents should also be lower in these regions. But young people in the country tend to move to the city, so they show up in the data as living in urban areas.</p>
<p>There has been a slight increase in women moving back into the parental home, particularly among those aged in their early 20s. However, the data tell us that most of the growth in young people living with parents has been among those young adults who never moved out in the first place. </p>
<h2>Housing costs, casual work, marriage delayed</h2>
<p>A number of mutually reinforcing economic and social factors are likely to be driving the overall trend towards staying in the parental home longer.</p>
<p>Of course, the cost of housing is a big factor, and it’s been rising faster than inflation and incomes. </p>
<p>It appears harder these days for young people to find full-time permanent employment opportunities. In particular, casual employment has risen for young adult men and women since around 2009; by comparison, it has only increased slightly for older men and has actually declined for older women.</p>
<p>There has also been growth in education participation of young adults, especially among those aged 25 and under. Interestingly, however, among those aged 18-21, the proportion of those living with their parents engaged in full-time education has fallen in recent years. This may reflect the growing importance of housing costs and the labour market in keeping young adults at home. The growth in education participation appears to have mainly been a factor up until 2011. </p>
<p>Changes in the preferences of young adults may also be a factor. It is possible that our longer life expectancy is increasing the desire to “live a little” before taking on the challenges and responsibilities traditionally associated with adulthood.</p>
<p>Certainly, young adults seem to be in less of a hurry to settle down and have children. For example, the median age at marriage has <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/3310.0Main%20Features32017?opendocument&tabname=Summary&prodno=3310.0&issue=2017&num=&view=">risen by 1.5 years</a> since the turn of the century for both men and women; similarly, the average age of mothers at first birth has been creeping upwards and is <a href="https://www.aihw.gov.au/reports/mothers-babies/australias-mothers-babies-2015-in-brief/contents/table-of-contents">now around 29</a>. </p>
<p>It is difficult to ascertain the relative importance of changing economic realities facing young adults versus changes in their preferences. </p>
<p>But one thing is clear: it could not happen without the capacity and willingness of parents to accommodate their adult children. So perhaps, ultimately, we should be looking to their parents for an explanation of this trend.</p>
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Read more:
<a href="https://theconversation.com/theres-a-reason-youre-feeling-no-better-off-than-10-years-ago-heres-what-hilda-says-about-well-being-121098">There's a reason you're feeling no better off than 10 years ago. Here's what HILDA says about well-being</a>
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<img src="https://counter.theconversation.com/content/120587/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Roger Wilkins receives funding from the Australian Research Council.</span></em></p><p class="fine-print"><em><span>Esperanza Vera-Toscano does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>In 2017, 56% of men aged 18 to 29 lived with one or both parents, up from 47% in 2001. And over the same period, the proportion of women aged 18 to 29 living with their parents rose from 36% to 54%.Roger Wilkins, Professorial Fellow and Deputy Director (Research), HILDA Survey, Melbourne Institute of Applied Economic and Social Research, The University of MelbourneEsperanza Vera-Toscano, Senior research fellow, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1204162019-07-29T20:24:26Z2019-07-29T20:24:26ZLanguage of love: a quarter of Australians are in inter-ethnic relationships<figure><img src="https://images.theconversation.com/files/285987/original/file-20190729-43109-str2ce.jpg?ixlib=rb-1.1.0&rect=16%2C41%2C5472%2C3587&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Inter-ethnic couples not only connect two individuals, but entire families and communities of different ethnic backgrounds.</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Australians have become much more diverse over the last few decades. In 2018, 29% of Australians were <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/3412.0Main%20Features22017-18?opendocument&tabname=Summary&prodno=3412.0&issue=2017-18&num=&view=">born overseas</a>, the most it has ever been since the late 19th century.</p>
<p>This diversity has influenced who people choose to be in a relationship with. </p>
<p>This year, the Household, Income and Labour Dynamics in Australia (HILDA) Survey released data on inter-ethnic couples – couples where the partners were born in different countries – in Australia. The survey found that in 2017, around one in four relationships in Australia were inter-ethnic.</p>
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Read more:
<a href="https://theconversation.com/have-you-found-the-one-how-mindsets-about-destiny-affect-our-romantic-relationships-117177">Have you found 'the one'? How mindsets about destiny affect our romantic relationships</a>
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<p>In fact, <a href="https://tapri.org.au/wp-content/uploads/2016/02/v17n1_2khoobirrellheard.pdf">sociologists</a> suggest that inter-ethnic partnering is a sign of social integration and cohesion. If this is the case, multi-ethnic Australia isn’t doing so bad, with almost half of the migrant population choosing a partner from a different country, despite the language and cultural challenges these relationships may sometimes bring.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/285672/original/file-20190725-136768-1dislga.jpg?ixlib=rb-1.1.0&rect=26%2C26%2C8648%2C5748&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/285672/original/file-20190725-136768-1dislga.jpg?ixlib=rb-1.1.0&rect=26%2C26%2C8648%2C5748&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/285672/original/file-20190725-136768-1dislga.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/285672/original/file-20190725-136768-1dislga.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/285672/original/file-20190725-136768-1dislga.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/285672/original/file-20190725-136768-1dislga.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/285672/original/file-20190725-136768-1dislga.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/285672/original/file-20190725-136768-1dislga.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Australia’s rate of inter-ethnic relationships show Australia is an open society that embraces its vibrant ethnic and cultural diversity.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
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<p>But before we talk about our findings, two caveats should be mentioned. First, country of birth is only a proxy measure for ethnicity since people born in the same country can be of different ethnicities, and people born in different countries can be of the same ethnicity.</p>
<p>Second, due to the HILDA sampling design, people who migrated to Australia after 2011 have a very small chance of being included in the study. This means the results can only be considered representative of people migrating to Australia prior to 2011.</p>
<h2>Growing diversity</h2>
<p>Australia’s share of overseas-born people is <a href="https://www.oecd-ilibrary.org/social-issues-migration-health/foreign-born-population/indicator/english_5a368e1b-en">among the highest in the OECD</a>. And the range of <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1819/BornOverseas">birth countries</a> of our overseas-born population has broadened. </p>
<p>In the immediate post-war era of 1947, fewer than 10% of Australians were born in a different country. And 79% of these overseas-born Australians came from the UK, Ireland or New Zealand. Now, Australians stem from a larger variety of countries, with more people being born, for example, in China, India or the Philippines.</p>
<p>Still, around 75% of Australian couples in 2017 consisted of partners who were born in the same country. Not surprisingly, the vast majority of these are couples where both partners were born in Australia, accounting for 56% of all couples. </p>
<p>Most inter-ethnic couples are made up of one Australian-born and the other born in a Main English-Speaking (MES) country – that is, the UK, Ireland, New Zealand, Canada, the US and South Africa.</p>
<p><iframe id="3wPwJ" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/3wPwJ/3/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<h2>Who is most likely to be in an inter-ethnic relationship?</h2>
<p>For starters, the chances of partnering with someone from another country differ vastly by region. </p>
<p>Australian-born people who live outside the capital cities are less likely to live in an inter-ethnic relationship than those in the capital cities. </p>
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Read more:
<a href="https://theconversation.com/we-all-want-the-same-things-in-a-partner-but-why-88557">We all want the same things in a partner, but why?</a>
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<p>In contrast, overseas-born people outside the capital cities are more likely to live in an inter-ethnic relationship than those living in the capital cities. </p>
<p>Both findings have to do with the pool of potential mates people meet in their neighbourhoods. On average, fewer overseas-born people live outside the capital cities. This means both Australian-born and overseas-born people living in these regions are more likely to partner with an Australian-born.</p>
<p>Yet, maybe surprisingly, there are also gender differences. Australian-born women are significantly more likely to live in an inter-ethnic relationship than their male counterparts. And in particular, they appear to be more likely to partner with someone from New Zealand or the UK. </p>
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Read more:
<a href="https://theconversation.com/mind-the-gap-does-age-difference-in-relationships-matter-94132">Mind the gap – does age difference in relationships matter?</a>
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<p>In part, this result can be traced back to the opportunities. People born in the MES countries are the most likely to partner with an Australian-born person. And there are just more male than female New Zealanders and UK-born people around.</p>
<p>Who your parents are matters too. Within the group of Australian-born people, those with at least one parent born overseas are more likely to live in an inter-ethnic relationship than Australian-born people with two parents that were born here.</p>
<p>And a higher age at the start of the relationship, a higher educational qualification, progressive attitudes towards marriage and children, and an openness to experience, also promote inter-ethnic relationships.</p>
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Read more:
<a href="https://theconversation.com/im-not-a-mind-reader-understanding-your-partners-thoughts-can-be-both-good-and-bad-70128">'I'm not a mind reader': understanding your partner's thoughts can be both good and bad</a>
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<p>Inter-ethnic couples not only connect two individuals, but entire families and communities of different ethnic backgrounds. They help break down boundaries between these ethnic groups and weaken prejudice and stereotypes. </p>
<p>Having one in four couples being inter-ethnic is indicative of an open Australian society that embraces its vibrant ethnic and cultural diversity.</p>
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Read more:
<a href="https://theconversation.com/theres-a-reason-youre-feeling-no-better-off-than-10-years-ago-heres-what-hilda-says-about-well-being-121098">There's a reason you're feeling no better off than 10 years ago. Here's what HILDA says about well-being</a>
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<img src="https://counter.theconversation.com/content/120416/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Inga Lass receives funding under the Australian Research Council’s Discovery Projects funding scheme (project # DP160103171).</span></em></p>Surprisingly, Australian-born women are significantly more likely to live in an inter-ethnic relationship than their male counterparts.Inga Lass, Academic, Melbourne Institute of Applied Economic and Social Research, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1072782018-11-30T03:16:45Z2018-11-30T03:16:45ZTrust Me, I’m An Expert: the science of sleep and the economics of sleeplessness<figure><img src="https://images.theconversation.com/files/246346/original/file-20181120-161621-38clkj.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">You know you're not supposed to do this -- but you do.</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>How did you sleep last night? If you had anything other than eight interrupted hours of peaceful, restful sleep then guess what? It’s not that bad – it’s actually pretty normal. </p>
<p>We recently asked <a href="https://theconversation.com/we-asked-five-experts-does-everyone-need-eight-hours-of-sleep-104487">five sleep researchers</a> if everyone needs eight hours of sleep a night and they all said no, you don’t.</p>
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Read more:
<a href="https://theconversation.com/does-everyone-need-eight-hours-of-sleep-we-asked-five-experts-104487">Does everyone need eight hours of sleep? We asked five experts</a>
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<p>In fact, only about one quarter of us report getting eight or more hours of sleep. That’s according to the huge annual Household, Income and Labour Dynamics in Australia (HILDA) survey which now tracks more than 17,500 people in 9500 households. </p>
<p>We’ll hear today from Roger Wilkins, who runs the HILDA survey at University of Melbourne, on what exactly the survey found about how much and how well Australians sleep.</p>
<p>But first, you’ll hear from sleep expert Melinda Jackson, Senior Research Fellow in the School of Health and Biomedical Sciences, RMIT University, about what the evidence shows about how <a href="https://theconversation.com/did-we-used-to-have-two-sleeps-rather-than-one-should-we-again-57806">we used to sleep in pre-industrial times</a>, and what promising research is on the horizon. Here’s a taste:</p>
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<p>Trust Me, I’m An Expert is a podcast where we ask academics to surprise, delight and inform us with their research. You can download previous episodes <a href="https://theconversation.com/au/podcasts/trust-me-podcast">here</a>.</p>
<p>And please, do check out other podcasts from The Conversation – including The Conversation US’ <a href="https://theconversation.com/au/podcasts/heat-and-light-1968">Heat and Light</a>, about 1968 in the US, and <a href="https://theconversation.com/au/podcasts/the-anthill">The Anthill</a> from The Conversation UK, as well as <a href="https://theconversation.com/au/podcasts/mediafiles">Media Files</a>, a podcast all about the media. You can find all our podcasts over <a href="https://theconversation.com/au/podcasts">here</a>.</p>
<p>The two segments in today’s podcast were recorded and edited by Dilpreet Kaur Taggar. Additional editing by Sunanda Creagh. </p>
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Read more:
<a href="https://theconversation.com/i-cant-sleep-what-drugs-can-i-safely-take-102343">I can't sleep. What drugs can I (safely) take?</a>
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<h2>Additional audio and credits</h2>
<p>Kindergarten by Unkle Ho, from <a href="https://www.elefanttraks.com/">Elefant Traks</a></p>
<p>Morning Two by <a href="http://freemusicarchive.org/music/David_Szesztay/20170730112627341/Morning_Two">David Szesztay</a>, Free Music Archive.</p><img src="https://counter.theconversation.com/content/107278/count.gif" alt="The Conversation" width="1" height="1" />
Only about one quarter Australians report getting eight or more hours of sleep. And in pre-industrial times, it was seen as normal to wake for a few hours in the middle of the night and chat or work.Sunanda Creagh, Senior EditorDilpreet Kaur, Editorial InternLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1008182018-08-09T20:12:15Z2018-08-09T20:12:15ZInteractive: how have your family’s fortunes changed? Use this drag-and-drop tool to find out<figure><img src="https://images.theconversation.com/files/231016/original/file-20180808-191013-la3sza.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Do you feel that, overall, you’re “better off” than you were in the past? Or that things are getting worse, or have plateaued?</p>
<p>We now have the data to get us a pretty good answer to that question, right down to the detail by “family types”, as categorised by the <a href="https://melbourneinstitute.unimelb.edu.au/hilda/publications/hilda-statistical-reports">Household, Income and Labour Dynamics in Australia (HILDA) Survey</a>. Starting in 2001, this longitudinal survey now tracks more than 17,500 people in 9,500 households.</p>
<p>The interactive below lets you drag and drop your family members into the house to see what the HILDA data reveal.</p>
<p><iframe id="tc-infographic-288" class="tc-infographic" height="1400" src="https://cdn.theconversation.com/infographics/288/d37d6b2e4bd124d29f741dd4bf99ca8f4e8bd69e/site/index.html" width="100%" style="border: none" frameborder="0"></iframe></p>
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Read more:
<a href="https://theconversation.com/politicians-stop-pitching-to-the-average-australian-being-middle-class-depends-on-where-you-live-88470">Politicians, stop pitching to the 'average' Australian; being middle class depends on where you live</a>
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<p>One measure we’re showing is what economists call “<a href="http://www.abs.gov.au/ausstats/abs@.nsf/0/A390E2529EC00DFECA25720A0076F6C6?opendocument">equivalised income</a>”. That’s different to your total household income; here’s how the HILDA report explains it:</p>
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<a href="https://images.theconversation.com/files/231054/original/file-20180808-191038-1uc0ko5.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/231054/original/file-20180808-191038-1uc0ko5.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/231054/original/file-20180808-191038-1uc0ko5.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=447&fit=crop&dpr=1 600w, https://images.theconversation.com/files/231054/original/file-20180808-191038-1uc0ko5.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=447&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/231054/original/file-20180808-191038-1uc0ko5.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=447&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/231054/original/file-20180808-191038-1uc0ko5.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=562&fit=crop&dpr=1 754w, https://images.theconversation.com/files/231054/original/file-20180808-191038-1uc0ko5.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=562&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/231054/original/file-20180808-191038-1uc0ko5.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=562&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<p>Overall, median equivalised incomes have gone up since 2001 for all family types, but some have fared better than others, as this chart from the full HILDA report shows:</p>
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<a href="https://images.theconversation.com/files/231053/original/file-20180808-142251-ug30zp.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/231053/original/file-20180808-142251-ug30zp.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/231053/original/file-20180808-142251-ug30zp.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=704&fit=crop&dpr=1 600w, https://images.theconversation.com/files/231053/original/file-20180808-142251-ug30zp.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=704&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/231053/original/file-20180808-142251-ug30zp.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=704&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/231053/original/file-20180808-142251-ug30zp.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=885&fit=crop&dpr=1 754w, https://images.theconversation.com/files/231053/original/file-20180808-142251-ug30zp.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=885&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/231053/original/file-20180808-142251-ug30zp.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=885&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<p>For the purposes of interpreting the HILDA data, you might need to be a bit flexible when deciding which “family type” applies to you. For example, a household with two single, adult sisters living together will be classified as two single-person “families”, even though they might see themselves as a family unit.</p>
<p>And it’s worth remembering, as the HILDA report <a href="https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0005/2839919/2018-HILDA-SR-for-web.pdf">notes</a>:</p>
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<p>… some households will contain multiple “families”. For example, a household containing a non-elderly couple living with a non-dependent son will contain a non-elderly couple family and a non-elderly single male. Both of these families will, of course, have the same household equivalised income. Also note that, to be classified as having dependent children, the children must live with the parent or guardian at least 50% of the time. Consequently, individuals with dependent children who reside with them less than 50% of the time will not be classified as having resident dependent children.</p>
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Read more:
<a href="https://theconversation.com/trust-me-im-an-expert-what-the-huge-hilda-survey-reveals-about-your-economic-well-being-health-and-family-life-100751">Trust Me, I'm An Expert: what the huge HILDA survey reveals about your economic well-being, health and family life</a>
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Read more:
<a href="https://theconversation.com/hilda-survey-reveals-striking-gender-and-age-divide-in-financial-literacy-test-yourself-with-this-quiz-100451">HILDA Survey reveals striking gender and age divide in financial literacy. Test yourself with this quiz</a>
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<img src="https://counter.theconversation.com/content/100818/count.gif" alt="The Conversation" width="1" height="1" />
Use our drag-and-drop interactive to find out how incomes, financial wellbeing, and housing stress has changed since 2001 for various ‘family types’, including singles or couples without children.Sunanda Creagh, Senior EditorLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1008322018-07-31T07:16:05Z2018-07-31T07:16:05ZVIDEO: 10 notable trends from the new HILDA survey<figure><img src="https://images.theconversation.com/files/229953/original/file-20180731-136649-11xxxyy.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
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<p>Australia is changing, and some emerging trends may surprise you. </p>
<p>The Household, Income and Labour Dynamics in Australia (HILDA) survey tells the stories of the same group of Australians over the course of their lives. Starting in 2001, the survey now tracks more than 17,500 people in 9500 households. </p>
<p>So what’s this year’s report show? Here are 10 trends worth noting.</p>
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Read more:
<a href="https://theconversation.com/trust-me-im-an-expert-what-the-huge-hilda-survey-reveals-about-your-economic-well-being-health-and-family-life-100751">Trust Me, I'm An Expert: what the huge HILDA survey reveals about your economic well-being, health and family life</a>
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<li><p>Household spending on energy has fallen since 2014, even as power prices rose. Maybe we’re using less power to cope with higher prices.</p></li>
<li><p>Compared to the past, more young people now don’t have a driver’s license, or delay getting one til their late 20s. And 74.6% of men born in the 1920s still held a driver’s licence in 2016.</p></li>
<li><p>The survey also looked at what factors might protect against cognitive decline as we age. Turns out brain exercises probably help - but not as much as you may think. The extent of decline over four years in one measure of cognitive ability was slightly smaller for those who regularly do puzzles, and slightly worse for those who regularly write.</p></li>
<li><p>Despite what you hear about small business being the engine of the economy, the share of people who describe themselves as “self-employed” has fallen for over 16 years. And these people are not employing as many workers as they once did. The data didn’t show strong growth in the gig economy either.</p></li>
<li><p>Our views about marriage and sharing housework are getting more progressive. But women are still shouldering much more housework and childcare than men, even as more women are working.</p></li>
<li><p>Single parent women and elderly single women are more likely to experience poverty than their male counterparts.</p></li>
<li><p>As wage growth has slowed, household incomes have stagnated. Growth in household disposable income started to weaken in 2009, as the GFC took hold.</p></li>
<li><p>Home ownership has declined, more of us are renting and intergenerational inequality has grown.</p></li>
<li><p>There is a clear gender divide in financial literacy: when asked a set of financial literacy questions, 49.9% of men answered all five correctly, compared with 35.4% of women.</p></li>
<li><p>Australians, especially women, are much more likely to hold post-school qualifications than in the past.</p></li>
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<strong>
Read more:
<a href="https://theconversation.com/hilda-survey-reveals-striking-gender-and-age-divide-in-financial-literacy-test-yourself-with-this-quiz-100451">HILDA Survey reveals striking gender and age divide in financial literacy. Test yourself with this quiz</a>
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<img src="https://counter.theconversation.com/content/100832/count.gif" alt="The Conversation" width="1" height="1" />
Here are 10 trends worth noting from this year’s huge Household, Income and Labour Dynamics in Australia (HILDA) survey. For starters, household spending on energy fell, even as power prices rose.Sunanda Creagh, Senior EditorWes Mountain, Social Media + Visual Storytelling EditorJerwin De Guzman, Multimedia InternLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1007512018-07-30T19:52:25Z2018-07-30T19:52:25ZTrust Me, I’m An Expert: what the huge HILDA survey reveals about your economic well-being, health and family life<figure><img src="https://images.theconversation.com/files/229744/original/file-20180730-106502-15n7m3i.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The enormous Household, Income and Labour Dynamics in Australia (HILDA) survey tells the stories of the same group of Australians over the course of their lives.</span> <span class="attribution"><span class="source">Mavis Wong/The Conversation NY-BD-CC</span>, <a class="license" href="http://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></span></figcaption></figure><p>On today’s episode of the podcast, we’re talking about what one of Australia’s biggest longitudinal surveys and richest data sets, <a href="https://melbourneinstitute.unimelb.edu.au/hilda/publications/hilda-statistical-reports">released today</a>, says about how the nation is changing. And some of the trends may surprise you. </p>
<p>The <a href="https://melbourneinstitute.unimelb.edu.au/hilda/publications/hilda-statistical-reports">Household, Income and Labour Dynamics in Australia (HILDA) survey</a> tells the stories of the same group of Australians over the course of their lives. Starting in 2001, the survey now tracks more than 17,500 people in 9,500 households, asking about their economic well-being, health and family life. </p>
<p>So what does this year’s report tell us about the country Australia has become? </p>
<p>Here to break it all down for us today is Roger Wilkins from the University of Melbourne, lead author of the report.</p>
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Read more:
<a href="https://theconversation.com/hilda-survey-reveals-striking-gender-and-age-divide-in-financial-literacy-test-yourself-with-this-quiz-100451">HILDA Survey reveals striking gender and age divide in financial literacy. Test yourself with this quiz</a>
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<p>Wilkins said he was surprised by what this huge survey showed about Australians’ financial literacy, our energy use, how many of us are putting off getting a driver’s licence, how our economy is changing, and how our attitudes toward marriage and family life are shifting. </p>
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<p>The report reveals some insights into where we perhaps need to concentrate our public policy efforts to boost Australia’s economic well-being.</p>
<p>What does it all mean for you and me? Listening to Roger Wilkins explain it all may just inspire you to rethink your own financial future.</p>
<p>Roger Wilkins spoke to The Conversation’s deputy politics and society editor Justin Bergman. We’ve included an edited transcript below.</p>
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<h2>What is HILDA and why does it matter?</h2>
<p><strong>Justin Bergman:</strong> Roger, in a nutshell I’d love to start out by just hearing what the HILDA survey is and why this matters to people. </p>
<p><strong>Roger Wilkins:</strong> The HILDA survey is Australia’s nationally representative longitudinal study of Australians. It started in 2001 and it’s a bit like the ABS (Australian Bureau of Statistics) cross-sectional surveys we’re familiar with, where we get information on people’s employment, their family life, their incomes, their health and well-being. But what distinguishes HILDA is that we’re following the same people year in, year out.</p>
<p>So we are getting a moving picture of people’s lives rather than the cross-sectional snapshot or photograph that the ABS surveys give us. So that’s really what’s unique about HILDA.</p>
<p>We’re now entering our 18th year. So we’re getting a really rich picture of how people’s lives evolve over time, and it allows us to answer all sorts of questions that we couldn’t do with cross-sectional data. </p>
<p>Things like: if someone is poor in one year, how likely are they to be poor the next year? You can’t answer that with cross-sectional data but with our data you can see how long, whether it’s the same people who are poor year in, year out, or whether it tends to be a temporary affair. </p>
<p>And moreover, you can look at: well, who are the people who managed to get themselves out of poverty? And who are the people who don’t? </p>
<p>This gives us incredibly useful information for policymakers about who are the people who are persistently struggling, for example, and therefore we should be thinking more about from a policy perspective. And that’s just one example of many in terms of the value of the HILDA Survey. </p>
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<figcaption><span class="caption">Some of the findings in this year’s HILDA report.</span></figcaption>
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<h2>Energy spending is falling</h2>
<p><strong>Justin Bergman:</strong> I realise it’s probably a great deal of data to pore through and lots of interesting findings we’re going to get into in this podcast. Were there any that you found particularly surprising or interesting, just off the top? </p>
<p><strong>Roger Wilkins:</strong> Well, we have been tracking people’s household expenditure since 2005 and that includes their expenditure on home energy. Things like electricity and gas. So, we thought, well, there’s been a lot of attention recently to rising prices for electricity and gas. So we thought, well let’s have a look at what’s been happening to household expenditure. That’s different to the price because your expenditure depends on not only the price but how much of the energy you use. </p>
<p>And one thing that surprised me was that the HILDA data is showing that people’s expenditure actually peaked in around 2014. So since then people have actually been <em>decreasing</em> their expenditure, in real terms at least, adjusting for inflation. </p>
<p>So that was something that I wasn’t expecting because there’s been a lot of recent media about prices continuing to rise since 2014 and yet expenditure hasn’t been rising since 2014.</p>
<p>What it seems is that people are have been adapting to these higher prices and doing things like buying energy-efficient appliances, insulating their homes, installing solar panels, perhaps heating fewer rooms in the house in winter. That sort of thing seems to have been going on. </p>
<p>So, as I said, the total expenditure on home energy has actually declined slightly since 2014. </p>
<h2>Cognitive ability and decline</h2>
<p><strong>Justin Bergman:</strong> Great. And one of the interesting chapters that we thought was quite surprising was the one about measuring cognitive ability. And I wanted to ask you, starting off, what are the factors that you looked at in this chapter, when it comes to what contributes to cognitive decline?</p>
<p><strong>Roger Wilkins:</strong> Yes, so we have now in two years - in 2012 and 2016 - administered these tests which are called “cognitive ability tasks”. They ask the respondents to perform various activities which allow us to produce measures of their cognitive functioning or their cognitive ability.</p>
<p>And because we have, as I said before, we’re following the same people year in, year out, we can actually look at how these measures of cognitive ability changed between 2012 and 2016. </p>
<p>And we do indeed find that, particularly at the older end of the age spectrum, that there is considerable cognitive decline; that people’s performance on these tests does decline, particularly once you sort of get over the age of 70 - 75. That’s when we really start to see that decline becoming quite sizeable. </p>
<p>So one of the things that we did in this year’s report is looked at whether there were things other than age that were predictive of cognitive decline. And we were particularly interested in whether there were various cognitive activities or other activities that you might engage in that could protect against cognitive decline. </p>
<p>So we looked at things like how often you do puzzles, things like crosswords, how often you read, how often you write, whether you use a computer regularly, whether you do any volunteering, whether you are actually doing any paid employment, how often you look after grandchildren. These sorts of activities, the basis that perhaps the more stimulated you are cognitively, the less decline you’d experience.</p>
<p>And the overriding result we found is that very little seems to protect against cognitive decline. We find some evidence in favour of doing puzzles regularly, things like crosswords, where on one of the measures of cognitive ability it did seem to reduce the extent of decline.</p>
<p>But broadly speaking, most of these cognitive activities didn’t seem to impact on the extent of decline. </p>
<p><strong>Justin Bergman:</strong> But doing puzzles was one that you saw that did have an impact. Any idea why that might have been?</p>
<p><strong>Roger Wilkins:</strong> Well, I mean, the logic is that it’s sort of the “use it or lose it” argument; that if you’re using your brain, in the same way as if you were exercising a muscle, it keeps it in better condition. That’s sort of the logic. But for some reason we don’t, for example, find that with writing regularly. </p>
<p>That probably is suggestive that doing your crosswords or Sudoku or the like is perhaps not a bad idea, particularly if you enjoy doing them, because it might be having this beneficial side effect. </p>
<p>We also looked at perhaps what you think of as behaviours that might be adverse to cognitive functioning. So, in particular, things like smoking and drinking. And there is some evidence that heavy consumption of alcohol does accelerate cognitive decline but we don’t find any effects of smoking.</p>
<p><strong>Justin Bergman:</strong> Very interesting. So do your puzzles and try to avoid alcohol as much as possible.</p>
<p><strong>Roger Wilkins:</strong> Sounds like common sense, doesn’t it?</p>
<h2>More young people are delaying getting a driver’s license</h2>
<p><strong>Justin Bergman:</strong> So, going to the chapter about people driving in Australia, what did you notice about the data on driver’s licences?</p>
<p><strong>Roger Wilkins:</strong> Yes, well, I mean, people would not be surprised to learn that most people do have a driver’s licence. Although a surprising - well, for me, at least - quite a surprisingly high proportion of young people in the 18-24 range don’t have a driver’s licence. </p>
<p>So while most people — over 90% — eventually get their licence, for many of them it’s not until their late 20s or even their 30s when they do get their licence. So, for example, in the 18-19 range, over a third of people in that age range don’t have a driver’s licence.</p>
<p>And something that we see in just the four-year period between 2012 and 2016: when we asked people whether they have a driver’s licence, even over that short period, we have seen a decline in the proportion of people who have a driver’s licence in that age range.</p>
<p>So whether that’s because the requirements in order to pass the test have been tending to ramp up in most states, I’m not sure. Certainly, there obviously have always been significant costs for obtaining a licence which might be a barrier for young people but I’m not sure that, you know, the extent to which those costs have increased. For example, requiring logbooks with a certain number of hours of driving, I’m not sure exactly the timing of when those increases in requirements have occurred. </p>
<p>But certainly this data is showing an increasing proportion of young people without a licence. </p>
<h2>Many men hang on to their driver’s licence until later in life</h2>
<p><strong>Justin Bergman:</strong> Right, and on the opposite end of the spectrum, we also noticed that a large number of people in the older generations have driver’s licences. But specifically, you found 74.6% of men born in the 1920s still held a licence in 2016. So what does the data tell us about older people with driving?</p>
<p><strong>Roger Wilkins:</strong> I think certainly we see that loss of licence - whether it’s relinquished or having it cancelled - is very much concentrated amongst older people. </p>
<p>Although surprisingly, for me at least, a surprisingly high proportion of young people do seem to lose their licence over a four-year period. So, you know, at least sort of 2-3% of people in their 20s and 30s reported that they had a licence in 2012 and they didn’t in 2016. </p>
<p>The extent to which that is because they had traffic violations that resulted in suspension or cancellation, I’m not sure. We didn’t ask why they didn’t have a licence but that did surprise me. </p>
<p>Certainly, the rates of loss of licence are much higher amongst the older age groups. But, as you said, nearly three-quarters of men born in the 1920s - so they’re all, I guess, at least 86 years old in 2016 - so at least three-quarters or nearly three-quarters of men aged 86 and over still held a driver’s licence. </p>
<p>And that does certainly seem quite high and it’s certainly a lot higher than amongst women. So it does seem that men hang on to their licences a lot longer.</p>
<p>Now, that doesn’t necessarily mean that they’re driving. You can have a licence without driving but it’s probably strongly correlated with driving. So it does suggest that, you know, particularly men are able to hang on to their licence longer than or are willing to hold on to them longer than women. </p>
<h2>The share of workers who describe themselves as ‘self-employed’ is falling</h2>
<p><strong>Justin Bergman:</strong> Moving on, can you tell us a little bit about what the data showed us about self-employed workers that you found interesting or surprising in the survey?</p>
<p><strong>Roger Wilkins:</strong> Yes, certainly what is interesting is that self-employment has been declining this century. So at least the proportion of people in the labour market who describe themselves as self-employed has been declining for the last 16 plus years. And that’s especially concentrated on people who employ others, so we’re really talking here about a decline in small business. </p>
<p>And this is, I guess, rather at odds with a lot of the rhetoric we see amongst politicians about how small business is the engine of the economy and where growth in jobs comes from. And the evidence is quite to the contrary: that in fact our employment growth has really not come from small business or from self-employment. It’s really been coming from larger employers, be they medium or large businesses. </p>
<p>And I think given what we’re observing in the trends, I think that’s something that over coming years will continue. That it is probably, to my view, a bit wrong-headed to think that that stimulating employment in small business is the way to generate jobs in the community more broadly. I think the changing structure of the economy is actually moving us further away from that than towards it. </p>
<p>And in that context it’s also interesting that for all the talk about the rise of the gig economy, these are these jobs that are I guess facilitated by apps on phones and things like Uber and Deliveroo and things like that. We don’t see evidence in the data of much growth in employment of this kind. </p>
<p>So as I said, self-employment has actually been declining. You might think well, maybe many of these gig-type jobs are secondary jobs. So that while people in their main job are employed, perhaps in a second job they’re a gig worker doing some Uber driving on the side. But we haven’t seen a growth in multiple job-holding either. </p>
<p>So it seems so far that most of these gig jobs have really been about transforming jobs that already existed, so taxi drivers have always tended to be self-employed. Uber drivers are self-employed. We’ve got sort of a compositional change, a bit of a shift away from traditional taxis towards these Uber drivers.</p>
<p>It’s the same with, I guess, food delivery. Casual observation would suggest that there has been a rise in these gig-type jobs but I think it’s easy for us to overestimate how significant a phenomenon this is. </p>
<h2>On marriage and housework, our attitudes are changing faster than our behaviour</h2>
<p><strong>Justin Bergman:</strong> It is really interesting, actually. We were also quite surprised by some of the things you see in the attitudes towards marriage and family changing. And I was curious what you’re seeing in terms of attitudes in Australian society becoming more progressive on this front.</p>
<p><strong>Roger Wilkins:</strong> Well, you’ve essentially summed up what we find. For a long time now, we’ve been tracking people’s attitudes to marriage and family and to parenting and paid work. </p>
<p>This allows us to produce measures of the extent to which people have what we might call “progressive views”, which, in very loose terms, is the extent to which people are in favour of men taking a more active role in raising children and women taking a greater role in bringing in the household income, so being more engaged in the labour market. There are other dimensions to these measures of traditional views versus progressive views. But that’s probably the most important dimension and we’re certainly seeing that views are becoming considerably more progressive. There’s been quite substantial change over the course of this century.</p>
<p>What, to me, was interesting is that when you actually look then at how behaviour is changing then it seems that these changes in attitudes aren’t really translating so far into much change in how people behave.</p>
<p>This is very much connected to the arrival of children. So before children arrive, men and women have quite similar-looking division of their labour – the amount of time they spend in employment, the amount of time they spend on housework and so forth is quite similar. </p>
<p>But once the first child arrives, and this is probably not news to anyone who has had kids out there, but there’s a sharp divide that opens up between men and women. </p>
<p>Women withdraw, to a large extent, from the labour market and men, to a large extent, withdraw from the home production - if you like, from the housework and the care. </p>
<p>And what’s really interesting is how this persists. So even once the children age and move through school and even beyond, we still see this division persisting. So the arrival of the child precipitates a change, so even when the care requirements of the children diminish and so forth, we still see this divide between men and women persist. </p>
<p>So, I think there are good economic explanations for this but I also think that there are reasons, from a public policy point of view, for us to be concerned about this. </p>
<p>And really, it relates to the fact that we know probably around one in three marriages will end in divorce - maybe more, maybe a bit less going forward. That, therefore, means that women are much more vulnerable in that post-divorce world than men because they’ve put their careers on hold, their income-earning potential is considerably lower than men’s. And so therefore their economic well-being is likely to be lower than men’s post-divorce.</p>
<p>And then that has flow on effects into their retirement living standard because their superannuation contributions will be lower. So I think while it might make economic sense for men and women to specialise in this way, it is having this undesirable longer-term consequence for women’s well-being and that’s why we do see higher rates of poverty amongst single women, particularly single parent women and elderly single women, than we see for men. </p>
<p><strong>Justin Bergman:</strong> Interesting. I don’t know if you’ve tracked these data for same-sex couples as well. Have you noticed any divisions in terms of attitudes toward housework and the divide in other types of marriages?</p>
<p><strong>Roger Wilkins:</strong> No, so we haven’t looked at that this year. One of the problems in doing so is that the HILDA survey is a sample survey, so while we have 17,500 people from right across Australia, which gives us a lot of potential to produce reliable estimates on what is happening in the community, when you look at particular demographic subgroups it becomes more difficult to make reliable statements about overall trends.</p>
<p>So while same-sex couples are a significant minority in the community, they are still quite a small part of the HILDA survey sample. So it becomes a bit more difficult to be confident in estimates based on small demographic groups.</p>
<h2>Australia has its problems, but society still functions well for most</h2>
<p><strong>Justin Bergman:</strong> Just wrapping up, looking at the data as a whole, I’m curious what story you think it’s telling about how Australia’s going, how it’s changing, where it’s going at the moment?</p>
<p><strong>Roger Wilkins:</strong> Well, I mean for all its problems - and there are, of course, many - the clear picture from HILDA Survey that Australia is a well-functioning society in which most people feel able to pursue fulfilling lives, pursue their aspirations and live the life, or a form of the life, that they aspire to.</p>
<p>So while, of course, there is much to do to make our society work better, I think we risk making some big mistakes, moving forward, if we aren’t cognisant of how much is already working quite well.</p>
<p>I think that’s something that probably gets lost a bit in a lot of public discussion and media. We tend to focus on the negative and that creates, I think, an impression of much greater dysfunction in our society than is actually the case. </p>
<p>Now, you have always got to very quickly follow up such a statement with the caveat that of course there are problems and HILDA certainly identifies many of these problems and concerns that we should be addressing.</p>
<p>But I guess there’s always the risk of of overreacting and therefore damaging things that are good about our community in seeking to solve some other problems. </p>
<p>So, that said, what sort of trends come out of the data that would be of concern? I think decline in home ownership is a very big concern that has a very strong link to growing evidence of intergenerational inequality, so particularly younger people in the age range up to around 40, compared with older people, the baby boomer generation. There’s been a growth in inequality across the generations and it’s very much tied to home ownership. </p>
<p>We also we have this persistent disadvantage among many single parents and I think that’s a continuing priority for policy, in my view. And the other persistent trend that remains a concern is that household incomes are quite stagnant and that’s very much related to the stagnation in wages.</p>
<p>It’s one thing to be concerned about it but it’s less obvious what you do to address it. </p>
<p><strong>Justin Bergman:</strong> Roger, thank you so much, very illuminating. We really appreciate you breaking it down for us and taking the time to be with us. Thank you. </p>
<p><strong>Roger Wilkins:</strong> Thank you.</p>
<h2>Additional audio</h2>
<p>Kindergarten by Unkle Ho, from <a href="https://www.elefanttraks.com/">Elefant Traks</a></p>
<p><a href="https://theconversation.com/anthill-27-confidence-100183">The Anthill podcast, episode 27: Confidence</a>, from The Conversation UK.</p><img src="https://counter.theconversation.com/content/100751/count.gif" alt="The Conversation" width="1" height="1" />
On today's episode, we'll hear what the huge HILDA survey says on Australians' financial literacy, energy use, how many of us are delaying getting a driver's license and how our economy is changing.Sunanda Creagh, Senior EditorJustin Bergman, International Affairs EditorLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1004512018-07-30T19:52:09Z2018-07-30T19:52:09ZHILDA Survey reveals striking gender and age divide in financial literacy. Test yourself with this quiz<figure><img src="https://images.theconversation.com/files/229628/original/file-20180727-106508-4qibrv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The latest HILDA data found women exhibiting much lower levels of financial literacy than men.
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>The <a href="https://melbourneinstitute.unimelb.edu.au/hilda">Household, Income and Labour Dynamics in Australia (HILDA) Survey</a> tells the stories of the same group of Australians over the course of their lives. Starting in 2001, the survey now tracks more than 17,500 people in 9,500 households.</p>
<p>One of the most striking findings from <a href="https://melbourneinstitute.unimelb.edu.au/hilda/publications/hilda-statistical-reports">this year’s HILDA report</a> is the large gender divide in financial literacy. Women exhibit much lower levels of financial literacy than men.</p>
<p>The <a href="https://www.oecd.org/finance/financial-education/49319977.pdf">OECD International Network on Financial Education</a> defines financial literacy as:</p>
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<p>a combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions and ultimately achieve financial wellbeing.</p>
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<p>A series of questions assessing basic competencies in financial concepts such as inflation, portfolio diversification and risk versus return, developed by <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5450829/">Annamaria Lusardi and Olivia Mitchell</a>, was put to the 17,500 HILDA respondents in 2016.</p>
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<iframe style="width:100%;height:600px;border:1px solid #cfcfcf;" src="https://www.riddle.com/a/160739?" title="Pop Quiz – How financially literate are you? Take the HILDA financial literacy test." width="100%" height="400"><section></section><section></section><section></section><section></section></iframe>
<p></p></div><p><a href="https://www.riddle.com" rel="nofollow" target="blank">Quiz Maker</a> – powered by Riddle</p><p></p>
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Read more:
<a href="https://theconversation.com/home-ownership-falling-debts-rising-its-looking-grim-for-the-under-40s-81619">Home ownership falling, debts rising – it's looking grim for the under 40s</a>
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<p>We found that, across Australia as a whole, about 50% of men correctly answered all questions, compared with only about 35% of women.</p>
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<span class="attribution"><a class="source" href="https://melbourneinstitute.unimelb.edu.au/hilda/publications/hilda-statistical-reports">HILDA</a></span>
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<p>In a world in which women are as engaged in the modern economy as men, it is not clear why this is the case. But it very much matters.</p>
<p>The report shows that low financial literacy is associated with poor financial well-being. For example, the poverty rate among people with low financial literacy is over twice the poverty rate among people with high financial literacy.</p>
<p>Women are indeed over-represented in poverty statistics and other measures of socioeconomic disadvantage. Low financial literacy cannot be ruled out as a factor in these outcomes.</p>
<p>This is further reinforced by the finding that women do not, on average, rate themselves lower than men on their personal financial management capability. </p>
<p>They are therefore unlikely to compensate for their lower financial literacy by, for example, seeking expert advice.</p>
<p>Some of the other findings from this year’s HILDA report are covered in this short video:</p>
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<h2>Age matters too</h2>
<p>While the gender divide is the most striking finding, substantial differences across age groups are also found. The young – aged under 25 – are the least financially literate, while those approaching retirement – aged 55 to 64 – are the most financially literate.</p>
<p>Young people scored particularly poorly on the question assessing understanding of inflation. The low-inflation environment that has persisted in Australia for some time now may have contributed to this. Young people simply have not experienced much inflation in their lifetimes.</p>
<p>Financial literacy is also strongly associated with household income and household wealth. Saliency no doubt plays a role in financial literacy: people with very little money are unlikely to take much interest in financial concepts such as diversification and the risk-return trade-off. Unfortunately, this is likely to help perpetuate their low financial well-being.</p>
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Read more:
<a href="https://theconversation.com/its-not-just-women-at-the-top-who-are-paid-less-than-men-88474">It's not just women at the top who are paid less than men</a>
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<h2>Financial literacy affects attitudes to finances</h2>
<p>Financial literacy is strongly connected to our attitudes to financial matters, in ways that give insights into why financial well-being might be lower for those with lower literacy.</p>
<p>Perhaps most important in this regard is that willingness to take financial risks is very low for the least financially literate. In contrast, it’s quite high for the most financially literate. </p>
<p>For example, 73% of those with low literacy report not being prepared to take any risks, compared with only 36% of those with high literacy.</p>
<p>Saving and spending horizons also tend to increase as financial literacy increases.</p>
<p>Of the least literate, 55% report that the next week or the next few months is the most important time-frame in planning saving and spending. By contrast, over two-thirds of those with high financial literacy report that the most important period in planning saving and spending is the next year, or longer. </p>
<p>Consistent with this finding, measures of “motivation traits” show that financial literacy is positively associated with “future orientation” – the extent to which one thinks about the long term when making decisions. </p>
<p>Financial literacy is also associated with lower impulsiveness and a greater desire to achieve things in life. </p>
<h2>Financial behaviours</h2>
<p>Differences in financial literacy do translate into differences in financial behaviours.</p>
<p>Perhaps unsurprising is that people with low financial literacy are less likely to get involved in decisions about household finances. This may be a rational response to the knowledge that one has low financial literacy, or it could reflect a lack of interest in (or perhaps even exclusion from) financial matters. This in turn might lead to both low participation in household decisions and low financial literacy.</p>
<p>More concerning is that low financial literacy is associated with a lower propensity to save regularly and, relatedly, a greater likelihood of experiencing financial stress, such as an inability to pay the rent or mortgage on time, or having to sell or pawn something of value.</p>
<p>The decision to hold a credit card is also a very large point of difference between low-literacy and high-literacy people. Three-quarters of people with low levels of financial literacy do not have a credit card, compared with 30% of those with high financial literacy.</p>
<p>That said, this is possibly not a bad thing. That’s because those with low financial literacy who do have credit cards are considerably less likely to pay off the outstanding balance each month than the financially literate.</p>
<p>Overall, these findings suggest much more work remains to be done to improve financial literacy in Australia – across genders, generations and income groups.</p>
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<p><em>To hear Roger Wilkins, Deputy Director (Research) of the HILDA Survey, explain the latest HILDA findings in an interview, listen to the latest episode of our podcast Trust Me, I’m An Expert over <a href="https://theconversation.com/trust-me-im-an-expert-what-the-huge-hilda-survey-reveals-about-your-economic-well-being-health-and-family-life-100751">here</a>.</em></p><img src="https://counter.theconversation.com/content/100451/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Roger Wilkins receives funding from the Australian Research Council. </span></em></p>The Household, Income and Labour Dynamics in Australia (HILDA) Survey, out today, found women exhibiting much lower levels of financial literacy than men. How do you score?Roger Wilkins, Professorial Research Fellow and Deputy Director (Research), HILDA Survey, Melbourne Institute of Applied Economic and Social Research, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/901042018-01-16T19:13:51Z2018-01-16T19:13:51ZThe problem isn’t unskilled graduates, it’s a lack of full-time job opportunities<figure><img src="https://images.theconversation.com/files/202022/original/file-20180116-53289-12i0rsg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The problem doesn't appear to be with the relevance of qualifications and skillsets to employment, but rather with the scarcity of employment. </span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>The Coalition government’s position on young people is best captured by the phrase <a href="http://www.budget.gov.au/2014-15/content/glossy/welfare/html/welfare_03.htm">“earning or learning”</a>. If you are under 30, the government expects you to be studying in an educational institute or working for a living. </p>
<p>Leaving the politics aside, the relationship between education and employment is usually a good indicator of labour market health: generally speaking, the more educated you are, the more earning potential you have.</p>
<p>So what happens when this relationship comes undone? Unfortunately, young people have been finding this out the hard way.</p>
<p>For <a href="https://theconversation.com/au/topics/gen-y-1496">“Gen Y”</a> (born in the 1980s and 1990s), it seems being the most educated generation does not necessarily translate to being the most employed generation. Recently, this fact has been highlighted by the release of the <a href="https://www.qilt.edu.au/docs/default-source/gos-reports/2017/2017_gos_national_report_final_accessiblea45d8791b1e86477b58fff00006709da.pdf?sfvrsn=ceb5e33c_4&_cldee=c29waGllLmhlaXplckB0aGVjb252ZXJzYXRpb24uZWR1LmF1&recipientid=contact-09dc957fbd87e7118120e0071b66a691-0930c8235d7d4a10bd63a0fdd8972b65&esid=f8ef3ba5-1cf7-e711-8134-e0071b68f7c1">Graduate Outcomes Survey</a> and <a href="https://www.qilt.edu.au/docs/default-source/ess/ess-2017/2017_ess_national_report_final.pdf?sfvrsn=19b2e33c_10">Employer Satisfaction Survey</a>. Together, these reports capture the mood of the current labour market. </p>
<h2>The transition from study to work</h2>
<p>The Graduate Outcomes Survey, canvasses graduates four months after graduation, asking them a range of questions. This includes asking graduates about the type of work they do, how much they earn, and how satisfied they are with their employment. It also covers more complex issues, like skills utilisation, demographic inequalities and how much study prepares graduates for work.</p>
<p>The good news is the overall number of undergraduates in full-time employment has risen to 71.8%, up from 68.1% in 2014. The bad news is this is still well below the pre-<a href="https://www.rba.gov.au/education/resources/explainers/pdf/the-global-financial-crisis.pdf">Global Financial Crisis</a> employment level of 85.2% in 2008. </p>
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Read more:
<a href="https://theconversation.com/walking-the-line-on-gfc-times-17153">Walking the line on GFC times</a>
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<p>Worse still, the latest Household, Income and Labour Dynamics in Australia survey <a href="http://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0010/2437426/HILDA-SR-med-res.pdf">data</a> shows graduate wages are shrinking over time. For those who graduated between 2006-09, the average weekly wage was A$947.31 in their first year of graduate employment. For those who finished university between 2012-13, the graduate wage shrunk to A$791.58 a week - and that’s before factoring in inflation.</p>
<p>There are also uneven rates of employment, as some areas of study provide better employment prospects than others.</p>
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<p>Some of this is unsurprising. Medicine continues to provide full-time employment, while creative arts offers less in the way of traditional employment outcomes. But despite the emphasis on <a href="http://www.chiefscientist.gov.au/wp-content/uploads/STEMstrategy290713FINALweb.pdf">STEM</a> graduates in the government’s <a href="https://www.innovation.gov.au/page/national-innovation-and-science-agenda-report">innovation agenda</a>, businesses are failing to utilise the existing scientific workforce.</p>
<p>The question of skills utilisation proves to be similarly troublesome. </p>
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Read more:
<a href="https://theconversation.com/young-educated-and-underemployed-are-we-building-a-nation-of-phd-baristas-53104">Young, educated and underemployed: are we building a nation of PhD baristas?</a>
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<p>Two out of three graduates with full-time work reported they took a job unrelated to their study area, due to external labour market factors. These factors include employment relevant to their study not being available and employers wanting graduates to have more work experience, as well as graduates only being able to find part-time or casual work. </p>
<p>Unsurprisingly, part-time work is becoming a more likely employment pathway for graduates. Given that over a third of undergraduates are working part-time, it might be tempting to assume this shift away from full time work reflects a choice made by young people. </p>
<p>Contrary to claims young people want or need “flexibility” (like those made by business leaders such as Myer’s <a href="http://www.afr.com/news/economy/employment/workforce-and-productivity-summit-regulation-lags-millennials-flexibility-20151208-gliza9">David Umbers</a> and PwC’s <a href="https://www.linkedin.com/pulse/just-graduated-dont-know-what-luke-sayers/?trk=prof-post">Luke Sayers</a>), recent
<a href="http://education.unimelb.edu.au/__data/assets/pdf_file/0005/1624532/LifePatterns_10YearFollowingGenY_FINAL_webversion.pdf">research</a> shows Gen Y continue to desire full-time, secure employment just like previous generations. </p>
<h2>The view from the board room</h2>
<p>Turning to the Employer Satisfaction Survey, 84% of supervisors reported overall satisfaction with the quality of graduates who worked for them. While 42% of graduates reported their skillset wasn’t relevant to their employment, 64% of their supervisors saw relevant skillsets in graduates. Similarly, 93% of supervisors believed the degrees obtained by their employees prepared them well for employment.</p>
<p>But employers felt some aspects of undergraduate qualifications prepared graduates for employment more than others.</p>
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<p>Domain specific knowledge is the most valuable skill qualifications offer employers. Conversely, it appears employers don’t see qualifications as offering much in the way of technical, adaptive, or foundational skills.</p>
<p>Interestingly, none of the elite <a href="https://go8.edu.au/">Group of 8</a> universities placed in the top five for employer satisfaction. This honour went to James Cook University, University of Notre Dame, University of the Sunshine Coast, Bond University and the University of Wollongong. Only the University of Queensland and the University of Melbourne made it into the top ten.</p>
<p>It appears prestige is not rated as highly by employers as technical skillsets and domain specific knowledge.</p>
<h2>Where to from here?</h2>
<p>While there are certainly areas universities could improve to increase employer satisfaction, employers seem happy with the quality of graduates. The problem doesn’t appear to be with the relevance of qualifications and skillsets to employment, but rather with the scarcity of employment. </p>
<p>So, if <a href="http://www.abc.net.au/news/2017-11-29/university-students-dropping-out-in-record-numbers/9203636">young people are learning</a>, whose responsibility is it to make sure they’re earning?</p>
<p>More and <a href="https://theconversation.com/too-many-graduates-not-enough-jobs-universities-profits-and-clinical-need-13482">more students are graduating every year</a>, but businesses and the public service aren’t providing enough graduate level opportunities. </p>
<p>Given the commitment Education Minister Simon Birmingham has shown to <a href="http://www.theaustralian.com.au/higher-education/education-minister-says-uni-cuts-wont-hit-fees-funding/news-story/bcbbd18993586f4ce253b9c1ffe7092f">cutting university funding</a>, it seems universities will have to do more with less. If this <a href="https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r5869">legislation</a> comes into effect, the government could reinvest those savings in graduate programs that offer more technical training and vocational experience. </p>
<p>Particularly given the lack of opportunities offered to science and maths graduates, an <a href="https://theconversation.com/we-must-do-something-about-jobs-for-young-people-in-a-world-of-automation-68342">increase in funding</a> to the CSIRO and research institutes could provide for greater utilisation of STEM graduates.</p>
<p>Ultimately, we need to learn from both reports and design policy that gives young people a chance to start earning.</p><img src="https://counter.theconversation.com/content/90104/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Shirley Jackson receives funding from the Australian Research Council. He is affiliated with the Australian Manufacturing Workers Union, the National Tertiary Education Union and the Australian Labor Party.</span></em></p>The government claims university degrees are failing businesses, but analysis of the latest graduate outcome and employer satisfaction surveys tells us the problem is with underemployment.Shirley Jackson, PhD Candidate in Political Economy, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/842762017-09-25T20:11:56Z2017-09-25T20:11:56ZCognitive ability plays a role in attitudes to equal rights for same-sex couples<figure><img src="https://images.theconversation.com/files/186709/original/file-20170920-19979-lusrif.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The same-sex marriage postal ballot forms have been posted to Australians on the electoral roll.</span> <span class="attribution"><span class="source">AAP/Morgan Sette</span></span></figcaption></figure><p><a href="https://theconversation.com/revealed-who-supports-marriage-equality-in-australia-and-who-doesnt-82988">Recently</a>, Alice Campbell and I revealed the demographic traits associated with people expressing support for equal rights for same-sex couples using the <a href="http://melbourneinstitute.unimelb.edu.au/hilda">Household, Income and Labour Dynamics in Australia (HILDA) Survey</a> – a large, longitudinal survey that is representative of the Australian population.</p>
<p>My subsequent analyses of the HILDA Survey point to another important factor: cognitive ability. Specifically, there is a strong and statistically significant association between higher cognitive ability and a greater likelihood to support equal rights between same- and different-sex couples.</p>
<p>This may shed some light on why those who stand against equal rights may not be persuaded by evidence-based arguments in the ongoing marriage equality debate.</p>
<hr>
<p><em><strong>Further reading: <a href="https://theconversation.com/revealed-who-supports-marriage-equality-in-australia-and-who-doesnt-82988">Revealed: who supports marriage equality in Australia – and who doesn’t</a></strong></em></p>
<hr>
<h2>Measuring cognitive ability and support for equal rights</h2>
<p>From time to time the HILDA Survey collects one-off information from participants. During the 2012 face-to-face interviews respondents participated in <a href="http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2013n44.pdf">three hands-on tests</a> aimed at determining their cognitive ability. Such tests evaluated the degree to which participants were able to:</p>
<ul>
<li><p>recall and recite backwards progressively longer strings of numbers;</p></li>
<li><p>correctly pronounce 50 irregularly spelled words; and</p></li>
<li><p>match symbols and numbers based on a printed key against time.</p></li>
</ul>
<p>These tests are not perfect. They may contain some measurement error, may be culturally biased, and may not constitute a complete measure of cognitive ability. Yet they are widely recognised instruments routinely employed in psychological and educational research, and have been shown to be highly correlated with overall intelligence.</p>
<p>My analysis involved estimating the degree of support for the rights of same-sex couples at different levels of this measure of cognitive ability.</p>
<p>To do so, respondents’ scores in the three tests were rescaled and averaged into a composite measure of cognitive ability. Scores ranged from zero (lowest ability) to one (highest ability).</p>
<p>Support for equal rights came from a 2015 HILDA Survey question asking respondents to rate their degree of agreement with the statement “Homosexual couples should have the same rights as heterosexual couples do” on a scale from one (strongly disagree) to seven (strongly agree).</p>
<h2>A striking association</h2>
<p>Analyses based on a sample of more than 11,600 people revealed that those with lower levels of cognitive ability in 2012 were much less likely than those with high levels of cognitive ability to express support for equal rights in 2015.</p>
<p>The association was substantially and statistically significant.</p>
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<p>Some population groups – older people and those from non-English-speaking backgrounds, for example – may be more opposed to equal rights and also perform worse in cognitive ability tests. For the former group, this may be due to cognitive decline, and for the latter it may be due to English not being their first language.</p>
<p>To prevent this and other factors tampering with the results, I adjusted the models for age, gender, sexual identity, highest educational qualification, religiosity, ethno-migrant background, area remoteness, and state/territory of residence.</p>
<p>After these adjustments, as expected, the association between cognitive ability and support for the rights of same-sex couples faded moderately. Yet it remained large and statistically significant. </p>
<p>It is worth emphasising that education is controlled for in the models. Therefore, the results cannot be explained by people with high cognitive ability having higher educational qualifications.</p>
<p>The results were also quite robust: the patterns remained when excluding respondents from a non-English-speaking background, measuring support in 2011, and considering the measures of cognitive ability separately. However, the magnitude of the association differed across tests.</p>
<h2>Is it only attitudes toward same-sex couples?</h2>
<p>This finding poses the question of whether the pattern extends to people’s views about social equity in other life domains.</p>
<p>To test this, I extended the HILDA Survey analysis to examine the associations between cognitive ability and supportive attitudes toward women’s emancipation, women’s capability as political leaders, and single mothers.</p>
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<p>The same pattern emerged across all of the outcomes. Higher levels of cognitive ability were unambiguously associated with greater levels of support for egalitarian worldviews.</p>
<h2>What does it all mean?</h2>
<p>The findings do not mean that all who intend to vote “no” in the marriage ballot have a low level of cognitive ability. Nor do they mean that all those who intend to vote “yes” have a high level.</p>
<p>Yet the results suggest that, on average, people who stand against equal rights for same-sex couples are less likely to have cognitive resources that are important to participating in meaningful debate.</p>
<p>These may include the ability to: engage in abstract thinking and process complex chains of ideas; separate arguments based on facts from unfounded ones; not feel threatened by changes in the status quo; and critically engage with new or diverse viewpoints.</p>
<p>These results may thus shed some light over why some on the “no” side may be failing to offer or accept <a href="https://theconversation.com/evidence-is-clear-on-the-benefits-of-legalising-same-sex-marriage-82428">evidence-based arguments</a>, or why they keep relying on philosophically, historically or empirically <a href="https://theconversation.com/to-christians-arguing-no-on-marriage-equality-the-bible-is-not-decisive-82498">flawed ones</a>.</p>
<p>This applies, for instance, to the <a href="https://theconversation.com/factcheck-are-children-better-off-with-a-mother-and-father-than-with-same-sex-parents-82313">scientifically unsupported</a> claim that children are worse off in same-sex households. In fact, these arguments are being exploited by a “no” advertising campaign that relies almost exclusively on <a href="https://theconversation.com/marriage-vote-how-advocacy-ads-exploit-our-emotions-in-divisive-debates-83501">emotional instead of rational arguments</a>.</p>
<p>It is possible many supporters of the “no” case could not be convinced by reason and evidence. If so, the “yes” side’s best way to minimise the possibility of a surprise “no” victory – one that’s driven by a mobilised minority – may be to target the overwhelming <a href="https://theconversation.com/revealed-who-supports-marriage-equality-in-australia-and-who-doesnt-82988">majority of Australians</a> who support equal rights to have their say.</p><img src="https://counter.theconversation.com/content/84276/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Francisco Perales receives funding from the Australian Research Council as part of its Discovery Early Career Researcher Award scheme for a project titled 'Sexual Orientation and Life Chances in Contemporary Australia'.</span></em></p>There is a strong and statistically significant association between respondents’ cognitive ability and their support for equal rights between same- and different-sex couples.Francisco Perales, Senior Research Fellow (Institute for Social Science Research & Life Course Centre) and ARC DECRA Fellow, The University of QueenslandLicensed as Creative Commons – attribution, no derivatives.