Jobless Households in Australia: Incidence,Characteristics and Financial Consequences

Abstract

An emerging trend in Australia, over the past twenty or so years, has been for employment to become increasingly polarised into households where either no adult is working (jobless households) or all adults are working (all-work households). Despite this, relatively little research has been undertaken in Australia which has focussed specifically on these households. This article seeks to go some way towards filling this gap. Specifically, data from the first wave of the Household, Income and Labour Dynamics Survey in Australia (HILDA) Survey are used to: (i) quantify the incidence of jobless households in Australia; (ii) identify the characteristics of individuals that are associated with membership of a jobless household; and (iii) examine some of the financial consequences of living in a jobless household. The analysis finds that household joblessness in 2001 remains pervasive with strong associations with factors generally thought to influence individual joblessness such as age, education, ethnicity, illness and family background. It is also found that poverty and financial stress are more a function of household joblessness than of individual joblessness.

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