This research from the Productivity Commission shows Australia performs well on income mobility – both in terms of how much a person’s income is influenced by that of their parents and how much incomes tend to increase over a lifetime.

The report finds that 67% of the so-called ‘Xennial’ generation – those born in 1976–1982, on the cusp of the Millennial/Gen X divide – earn more than their parents did at a similar age.

However, the report also finds that children with parents in the bottom or top of the income scale are more likely to remain there themselves. Almost 15% of people with parents in the bottom income decile remained in the bottom decile, while just 6% of them ended up in the top decile.

The report notes that wealth tends to be ‘stickier’ than income, with people experiencing far lower levels of wealth mobility over their lifetimes. When income is adjusted to account for wealth, over 40% of people in the top or bottom two deciles in 2001 remained there in 2022.

The report collects a trove of data on poverty risk factors, showing renters, people from migrant backgrounds who do not speak English at home and single parents are among the groups most at risk. Moreover, people who live in disadvantaged neighbourhoods, including those in remote locations, are more likely to remain in poverty over time.