Knowledge and Resource Hub
14 January 2019

Poverty transitions in nonremote indigenous households : The role of labour market and household dynamics

This research used data from the Household Income and Labour Dynamics in Australia (HILDA) Survey, to estimate year-to-year poverty entry and exit rates for Indigenous and non-Indigenous individuals living in nonremote areas of Australia. Indigenous Australians of working age were found to have a higher probability of entering poverty and a lower probability of exiting poverty than non-Indigenous people. Changes in household size were the biggest triggers of poverty entry and exit for Indigenous people, accounting for almost 50% of poverty entries and 40% of poverty exits. Changes in household size were more prevalent for Indigenous than non-Indigenous people, due partly to higher birth and partnering rates, and to the greater proportion of Indigenous people who live in dynamic extended-family or multifamily households.