Featured Research

Productivity Commission report into Australia's economic mobility

22 July 2024

Research by Centre members has been included in the Productivity Commission’s latest report into economic mobility in Australia.

The report uses research by a range of Life Course Centre Chief Investigators, Research Fellows, Partner Investigators and Affiliates, to help inform their analyses of poverty, inequality, intergenerational mobility, economic growth and opportunities for equality, all of which are is highly relevant to the Life Course Centre’s core themes.

The productivity commission’s Fairly equal? Economic mobility in Australia, published July 2024, draws on data and research to investigate economic mobility over the course of a person’s lifetime, how shifts occur across generations, and how likely people are to escape poverty.

While the report shows that overall economic mobility is high in Australia, there are worrying signs that people experiencing poverty face some of the biggest barriers to moving up the income ladder.

One clear finding is 14.4 per cent, or one in seven Australians, experienced poverty in 2022 – the highest level since 2001.

The report said:

  • People most at risk of poverty include those not in paid employment, who come from a migrant background and do not speak English at home, over the age of 65, who rent housing, and live in a single person or single parent household.
  • Australians living in poverty (incomes below 50 per cent of the median) face some of the highest barriers to economic mobility.
  • The amount of time that people remain in poverty is important as it signals the extent of entrenched disadvantage. Longer periods of poverty are harder to exit, and people who do exit are more likely to re-enter than those who have not previously experienced poverty. 
  • One in 10 Australians experience persistent poverty, and where people live matters a great deal to their ability to escape poverty.

In releasing the report, Commissioner Dr Catherine de Fontenay said, “Most Australians have had a good opportunity to climb the income ladder, but it’s a much harder climb for Australians living in poverty.”

The full Productivity Commission Report can be accessed on the Commission’s website.