Resumen de Understanding Wage Inequality in Australia.

Arpita Chatterjee, Aarti Singh, Tahlee Stone

• In this paper we document the rise in wage inequality in Australia over the last decade. A key driver of this inequality is unobservable or residual inequality. We decompose residual wage inequality into permanent and transitory components. The estimates of the permanent shock from the first-difference approach allow us to reconcile life-cycle wage inequality.