Lifetime Earnings of Men in Australia

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Abstract
Most earnings comparisons and measures of inequality are based on the use of annual data. It is, however, argued that longer period comparisons are often more appropriate, although direct measures cannot be obtained because of data limitations. In the absence of longitudinal data, this paper obtains indirect estimates of the process of relative earnings mobility using cross-sectional data. These estimates are then used to provide measures of lifetime earnings and measures of the coefficient of variation of earnings measured over alternative time periods. Occupational comparisons are reported, based on data from the Australian Bureau of Statistics (ABS) Income Distribution Survey 1985-86. It appears that occupations in which earnings are most variable do not necessarily have high average earnings.

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