Demographic trends and consumption inequality in Australia between 1975 and 1993

We examine trends in consumption inequality among Australian households usi ng the Australian Bureau of Statistics Household Expenditure Surveys collec ted over the period 1975 to 1993. We find that the distribution of consumpt ion is much more equal than that of income and that both income and consump tion inequality rose by significant amounts over the period. However, consu mption inequality rose by much less (the Gini coefficient for income inequa lity rose by 17 percent while that for nondurable consumption rose by 9 per cent). We then examine the effects of demographic trends, specifically popu lation aging and changing family structures, and find they account for only a minor fraction in the overall growth in economic inequality.