Google AI


Modern Australian

Poverty isn’t a temporary experience in Australia. We need urgent policy tackling persistent disadvantage

  • Written by: Esperanza Vera-Toscano, Senior research fellow, The University of Melbourne
Poverty isn’t a temporary experience in Australia. We need urgent policy tackling persistent disadvantage

We often hear a job is the best way to get someone out of poverty. In many cases this is true, and anti-poverty strategies should prioritise improving people’s access to jobs.

But this isn’t the complete solution. For many – particularly those with disability or substantial caring responsibilities that limit their scope to work – the income support system remains crucial to avoiding persistent poverty.

It may not feel like it at a time of rising living costs, but the incomes of Australians have on average risen substantially over the last three decades and continue to trend upwards – we have never been richer.

However – as highlighted by the Productivity Commission – some in the community continue to be left behind.

Our new study of income poverty shows persistent poverty remains a significant problem in Australian society.

Looking back over the first two decades of this century, we found around 13% of the population are persistently poor.

We defined these as people who persistently have to live on incomes that are less than 60% of the median income in Australia (a definition employed by Eurostat for European Union member countries).

Poverty then isn’t simply a temporary experience in Australia, and tackling persistent disadvantage needs to be a policy imperative.

Poverty isn’t simply a temporary experience in Australia. Shutterstock

Why do people descend in poverty – and often stay there?

Understanding what drives poverty and its persistence is an essential first step to alleviating it.

Using data from the longitudinal Household, Income and Labour Dynamics in Australia (HILDA) Survey, we examined the extent and nature of persistent poverty among the same sample of Australians tracked over time.

Specifically, we looked at

  • why do people descend into poverty?
  • why do some people remain in poverty, while others escape it?
  • why some of those who escape poverty remain out of poverty while others fall back into it.

We also examined the degree to which the depth of poverty (how far someone’s income is below the poverty line) impacts on the likelihood of staying in poverty.

We found persistent poverty is more prevalent among:

  • women
  • single-parent families
  • older people
  • Indigenous Australians
  • people with a disability
  • less-educated people, and
  • people living in more disadvantaged regions.

This is consistent with previous studies of poverty made at a single point in time.

Perhaps unsurprisingly, those in deep poverty – the poorest of the poor – are the most likely to be persistently poor (up to five times more likely than the average person in the community).

The very poor are therefore a policy priority – not only because they are very poor now, but because they are more likely to remain poor.

‘Falling’ into poverty

Similarly, among those initially not in poverty, those with incomes closest to the poverty line – the poorest of the non-poor – are at greater risk of falling into persistent poverty.

Another policy priority therefore needs to be preventing those close to the poverty line falling into actual poverty.

When we examined the “trigger events” for people falling into poverty or rising out of it, we found the household’s success in the labour market is critical. In other words, people need to be able to get a job.

An increase in the number of employed people in the household is strongly associated with lifting people out of poverty.

There is also a strong association between a lack of work and the risk of persistent poverty.

Clearly, then, policy measures geared towards increasing employment, and retaining employment for those already employed, are key to reducing persistent poverty.

Another policy priority needs to be preventing those close to the poverty line falling into actual poverty. Shutterstock

It’s not just about jobs, though

But employment isn’t the only factor of importance. Any change in family type, but particularly becoming a single-parent family, increases the risk of poverty.

More broadly, the household context plays a crucial role in determining individuals’ poverty experiences.

Who you live with, what they do, and what happens to them are important. The household perspective then is critical to understanding poverty and designing appropriate policy responses.

The onset of disability or substantial caring responsibilities is also much more likely to tip you into poverty and keep you there.

Put simply, those who are more likely to experience persistent poverty tend to be constrained in their ability to participate in the labour market. Having a job may not be an option at all.

Focusing only on labour market-related anti-poverty policy measures therefore isn’t enough to fully address persistent poverty in the Australian community.

Many of those highly exposed to persistent poverty have very constrained access to paid work, because of factors such as:

  • long-term health conditions
  • high caring responsibilities for young children or
  • significant disabilities.

Even among couple-parent households, we found the more dependent children in the household, the lower the probability of exiting poverty.

This highlights the importance of child care assistance to facilitate employment participation and sustained income adequacy for families with young children.

Many of those highly exposed to persistent poverty have very constrained access to paid work, because of factors such as long-term health conditions. Shutterstock

An unavoidable conclusion

But even improvements in child care assistance aren’t enough. The simple fact is that, for a significant number of people, income support will continue to determine their living standards.

The unavoidable conclusion is that boosting income support payments beyond their current austere levels remains a crucial pillar of policy for governments genuinely committed to reducing persistent disadvantage.

Unfortunately, this does not appear to be on the agenda of either of the major parties.

Authors: Esperanza Vera-Toscano, Senior research fellow, The University of Melbourne

Read more https://theconversation.com/poverty-isnt-a-temporary-experience-in-australia-we-need-urgent-policy-tackling-persistent-disadvantage-181343

Virtual Livestock Fencing and GPS Tracking: Improving Visibility Across Cattle Properties

What Virtual Livestock Fencing Means for Modern Cattle Management Managing cattle across extensive properties requires more than knowing where anim...

Sydney Pawnbrokers Explained: How Hocking Your Car Actually Works

Sometimes you need cash, and you need it soon. If you own a car, you may already have a way to get it. That's what people mean when they say they've...

Moving Interstate from the Gold Coast to Brisbane (or Back)? What Removalists Wish You Knew First

Have you talked to anyone who’s done the move? They say the same thing: the drive up the M1 is the easy part. It's everything around it that catches...

Why the Spring School Holidays Are a Great Time to Visit Coffs Harbour

The spring school holidays are a good time to spend a few days on the Coffs Coast. The weather is starting to warm up, there is plenty to do outdoor...

What to Do When an Older Car Is No Longer Worth Keeping in Melbourne

Ever looked at another repair quote and wondered whether your old car is still worth the trouble? It is a common turning point for Melbourne motoris...

Your Baby's First Year: A Local Guide to Feeding, Sleep, and When to Get Extra Support

Ask ten parents in a Brisbane mothers' group how their baby is feeding or sleeping, and expect ten different answers.  Someone's baby sleeps throug...

Kitchen and Laundry Makeover Ideas That Don't Require a Full Renovation

Full kitchen renos are expensive — and most people don't actually need one.  They need the kitchen to stop looking like it's stuck in 2009, or they...

How Technology Is Reshaping the Modern Australian Commercial Kitchen

The commercial kitchen has always been shaped by technology. Refrigeration changed how ingredients could be stored, modern ventilation transformed k...

The Number on a Roller Blind Fabric That Nobody Explains

Somewhere in the fabric book, next to the colour name, there is a percentage. Three per cent. Five per cent. Ten per cent. Nobody explains it, most c...

What’s Trending in Men’s Jewellery This Father’s Day!

Finding a Father’s Day gift that feels personal, stylish and genuinely wearable is not always easy. While socks and novelty mugs have traditionally ...

Road Signs: Understanding Their Role in Clear and Effective Signage

Effective signage and display hardware can help businesses communicate information, promote products and organise customer or visitor movement. Road...

Bottle Label Printing: Key Factors to Consider Before Your Next Packaging Run

Effective packaging begins with understanding the product, bottle material, artwork and production requirements when planning bottle label printing. H...

Planning a Long-Distance Move With Interstate Movers Melbourne

Moving between states involves more planning than a typical local relocation. Along with packing and transporting household belongings, you need to...

Understanding the Role of an I/O Controller in Industrial Automation

Modern industrial systems depend on accurate communication between sensors, machines and control systems. An I/O controller can help manage this commu...

How the Right Mining Hose Supports Demanding Operations

Mining environments place considerable demands on equipment used for material transfer, water management and processing. Hoses operating in these co...

Simple Ideas for Making Social Gatherings More Memorable

We have all been to those parties where everyone just stands around the kitchen island, staring at their phones, waiting for someone else to make a mo...

Outdoor Wall Lights: Improving Exterior Lighting Around Your Home

Lighting can influence how a room looks, feels and functions, so the right fitting should be selected according to both appearance and practical req...

Commercial Office Cleaning: Combining Routine Office Cleaning With Melbourne Service

Keeping a workplace clean requires a service that can accommodate everyday tasks as well as the particular needs of the business. Professional comme...