Rather than post another lengthy contribution to what Richard Tsukamasa Green has dubbed Inequalityfest 2011, I thought I’d post a few charts on the distribution of income.
The first is an attempt to replicate Catherine Rampell’s graph of the US distribution of taxpayers’ incomes by percentile. I’ve used the ATO’s 2007-08 taxpayer data to compile this.
Brad DeLong suggested that Rampell’s graph should be on a log scale to better reflect the way we compare ourselves to others. So, here’s the same graph with the natural log of average income on the vertical axis.
Here’s the income distribution (using the tax data) by quintile, compared with the wealth distribution. The wealth distribution comes from ABS 6654.0. You can see that the distribution of wealth is much more unequal than the distribution of income.
The next couple of graphs are of the weekly earnings distribution for full time, non-managerial adult employees (from ABS 6306.0).