Abstract for: Inequality and wellbeing

Income inequality has been growing in most developed nations since the late 1970s. The empirical evidence links the level of inequality with a range of health and social problems, although the exact causality is debated. This study explores the relationship between income inequality and social and economic factors in developed countries, using Australia as an example. Modelling is used to investigate mechanisms to reduce inequality over time through redistribution of income from high to lower level income groups. The simulations illustrate the potential economic implications and social benefits accruing from reduced inequality.