Working Paper: NBER ID: w23416
Authors: Laura Panza; Jeffrey G. Williamson
Abstract: Compared with its nineteenth century competitors, Australian GDP per worker grew exceptionally fast, about twice that of the US and three times that of Britain. This paper asks whether the fast growth performance produced rising inequality. Using a novel data set we offer new evidence supporting unambiguously the view that, in sharp contrast with US, Australia underwent a revolutionary levelling in incomes between the 1820s and the 1870s. This assessment is based on our annual estimates of functional shares in the form of land rents, convict incomes, free unskilled incomes, free skill premiums, British imperial transfers and a capitalist residual.
Keywords: No keywords provided
JEL Codes: N17; N37; O47; O56
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Australia's GDP per worker grew exceptionally fast (O56) | significant leveling of incomes (D31) |
| rapid economic growth (O53) | decline in income inequality (D31) |
| emancipation of convicts (J47) | decline in income inequality (D31) |
| reduction of coerced labor (J47) | decline in income inequality (D31) |
| decline in income inequality (D31) | redistribution of income (D31) |