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In Australia the policy balance has shifted away from institutional forms of health and aged care towards supporting people in their own homes. This change presupposes a significant and growing supply of informal caring labour. A large proportion of informal carers (40-60 per cent) currently combine paid employment with their caring responsibilities. Using the longitudinal Household, Income and Labour Dynamics in Australia Survey, the paper examines the effect of caring on employment, hours worked and earnings. The analysis shows that working age carers experience disadvantage. Carers are more likely than non-carers to reduce their hours of work or exit from the labour force, and earn lower levels of income. In planning for an ageing population, policies will need to address these negative effects and privatised costs of caring if the supply of informal care is to be sustained in the future.

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This paper examines the sensitivity of estimates of income poverty rates and trends to variations in the poverty line and to whether or not certain households are included or excluded from the sample used to estimate poverty. The approach draws on the concept of consistent poverty, which has been used to identify those with incomes below the poverty line who also experience deprivation. Our approach involves excluding households with incomes below the poverty line if they report zero or negative income or are self-employed, have expenditure well in excess of their income, have substantial wealth holdings, or if they do not report having experienced financial stress over the past year. The combined impact of all four exclusions is to reduce the half-median income poverty rate from 9.9 per cent to 5.4 per cent, but also suggests that poverty increased by more over the decade to 2003-04 than the original estimates indicate. * The authors would like to acknowledge the comments provided by two anonymous referees, one of whom made a number of valuable suggestions that are reflected in this revised version of the paper, and the advice of Bruce Bradbury, who collaborated on the broader project of which this paper forms part.

Conventional poverty and inequality measures, based only on comparisons of financial resources, may underestimate gender differences in living standards. The value of time spent in household work by oneself and partner, and the value of leisure are key elements that need to be considered in measures of living standards. This article develops a method for measuring wellbeing at the level of the individual, rather than the household. Following the tradition of Australian models of ‘full income’, the final measure of wellbeing includes the value of time in leisure and unpaid work along with individual income, the benefits accruing from the social wage and the welfare gains from the ownership and use of assets. The article then compares the conventional income distribution and the ‘full income’ distribution to identify population subgroups disadvantaged on each of these measures. The results show that gender inequalities in living standards may be underestimated by conventional income measures, and that inequalities in personal income and time use contribute most substantially to gender inequality in the full income distribution.