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Current Issues Brief Index 2003-04

Current Issues Brief no.6 2003-04

Socioeconomic Indexes for Electoral Divisions: 2001 Census

Gerard Newman and Andrew Kopras
Statistics Group
10 February 2004

Contents

Index of Relative Socioeconomic Advantage/Disadvantage
Index of Relative Socioeconomic Disadvantage
Index of Economic Resources
Index of Education and Occupation

Endnotes

Appendix

List of Tables

Index of Relative Socioeconomic Advantage/Disadvantage

Ranked by the Index of Relative Socioeconomic Advantage/Disadvantage

Index of Relative Socioeconomic Disadvantage

Ranked by the Index of Relative Socioeconomic Disadvantage

Index of Economic Resources

Ranked by the Index of Economic Resources

Index of Education and Occupation

Ranked by the Index of Education and Occupation

List of Maps -Maps not available in HTML version due to size

Index of Relative Socioeconomic Advantage/Disadvantage

Index of Relative Socioeconomic Disadvantage

Index of Economic Resources

Index of Education and Occupation

 

Introduction

This paper provides data on four summary indexes, derived from the 2001 Census of Population and Housing, that measure different aspects of socioeconomic conditions for Commonwealth Electoral Divisions.

The five-yearly censuses of population conducted by the Australian Bureau of Statistics (ABS) collect data on a broad range of social and economic aspects of the Australian population. Each household is required to answer nearly fifty questions, covering such diverse topics as birthplace, occupation, educational qualifications, methods of travel to work and ownership of dwellings. While it is possible to compare Electoral Divisions on the basis of each census variable it is often more useful to compare divisions on the basis of a summary of related variables. The indexes shown in this paper have been derived by the ABS for this purpose. A paper comparing Electoral Divisions on the basis of a number of individual census variables has been published previously by the Parliamentary Library.(1)

This paper shows each Electoral Division ranked on the basis of each index, together with a description of each index and some notable features of the rankings. It has been produced from data obtained from the Australian Bureau of Statistics for Census Collection Districts (CCD) and aggregated to Commonwealth Electoral Divisions (CED) by taking the weighted average (based on Census population figures) of the CED. All indexes have been constructed so that relatively disadvantaged areas have low index values. A more detailed explanation of the indexes is available from an Information Paper published by the ABS.(2)

Data for each index is presented in two tables. The first table shows each Electoral Division in alphabetical order and the second shows each Electoral Division ranked by the index (divisions are ranked from lowest to highest). The political party holding the Electoral Division after the 2001 election and 2002 Cunningham by-election is shown on each table. The paper also includes choropleth maps of electoral divisions for each index.

Description of the Indexes

There are four indexes shown in this paper. Each index summarises a different aspect of the socioeconomic conditions in the Electoral Divisions. The indexes have been obtained by summarising the information from a variety of social and economic variables. While there are similarities in the rankings of the Electoral Divisions, each index uses a different set of underlying variables.

The four indexes are:

       Index of Relative Socioeconomic Advantage/Disadvantage

       Index of Relative Socioeconomic Disadvantage

       Index of Economic Resources

       Index of Education and Occupation.

All the indexes (including the Index of Relative Socioeconomic Disadvantage) have been constructed so that relatively advantaged areas have high index values. For the Index of Relative Socioeconomic Disadvantage this means that relatively disadvantaged areas have low index numbers. To enable easy recognition of high and low scores, the index scores have been standardised to have a mean of 1000 across all Collection Districts in Australia. See the Appendix to this paper for a detailed list of the variables included in each index.

The Index of Relative Socioeconomic Advantage/Disadvantage includes variables that measure relative social and economic well-being. Indicators included are: income, occupation, employment status, educational qualification, internet usage and size of dwelling. A higher score on this index means that an area has a relatively high proportion of people with high incomes, professional occupations and tertiary qualifications. It also means that an area has a low proportion of people with low incomes, unskilled occupations and no education qualifications. Conversely, a lower score on this index means that an area has a relatively high proportion of people with these characteristics and a low proportion of people with high incomes, professional occupations and tertiary education qualifications.

As the name implies, the Index of Relative Socioeconomic Disadvantage is derived from attributes that indicate relative social and economic hardship. Variables included are low income, low educational attainment, unskilled occupations, high unemployment, one-parent families, renting households and Aboriginal and Torres Strait Islanders. To maintain consistency with the other indexes, the Index of Socioeconomic Disadvantage has been inverted so that advantaged Electoral Divisions have a high index score and disadvantaged divisions have a low score. Thus a high score on this index means that an area has relatively fewer people with the above attributes, while a low score indicates relatively more people with these attributes. It is important to understand that a high score here reflects a lack of disadvantage rather than high advantage.

The Index of Economic Resources reflects the profile of the economic resources of families in Electoral Divisions. The indicators summarised in this index reflect the income and expenditure of families. Variables included are: mortgage repayments, rental payments, income and sized dwelling. A high score on this index means that an area has a higher proportion of people with high incomes, large mortgage payments, large rental payments and large dwelling size, while a low score indicates a lower proportion of people with these characteristics.

The Index of Education and Occupation is designed to reflect the educational and occupational structure of the population. Education variables included in the index are the level of educational qualification attained or whether further study is being undertaken. Occupational variables include the major occupation groups and the unemployed. An area with a high score on this index would have a high concentration of people with higher educational qualifications or undertaking further study and persons employed in higher skilled occupations. A low score indicates a concentration of people with low education attainment, low occupation skills or unemployed persons.

Data Limitations

The indexes contained in this paper are subject to a number of limitations which should be borne in mind when the indexes are used to compare Electoral Divisions.

Firstly, the indexes include only some of the social and economic variables for which data was collected in the 2001 Census of Population and Housing. There are a number of social and economic indicators, such as wealth, savings, health, access to infrastructure, that affect the well-being of the population but are not collected in the census and are therefore not included in the indexes. In addition, the indexes include only a limited number of the available census variables. Some notable exclusions from the indexes are age, country of birth, religion and hours of work.

Secondly, the indexes which have been produced depend upon the variables that have been included and the relative weights attached to those variables. The inclusion of a different range of variables or a different weighting pattern would result in a different index score. The indexes included in this paper are only four of the many indexes that could have been produced using census data.

In addition to the above conceptual limitations in the indexes, there are a number of technical limitations. Non-response to individual census items may affect the accuracy of the indexes if there is a socioeconomic bias to non-response. Persons in non-private dwellings (e.g. boarding houses, etc.) are under-represented in the indexes as the variables pertaining to families and dwellings include only occupied private dwellings. The census results are based on place of enumeration rather than place of usual residence, thus holiday resort areas (e.g. Gold Coast) may be affected.

Other aspects of the indexes that should be borne in mind when comparing the indexes for different Electoral Divisions are that:

       The indexes are 'ordinal measures' and not 'interval measures', i.e. the indexes can be used to order Electoral Divisions into a ranked order but cannot be used to show that one Division is twice as well-off if its index score is twice that of another Division.

       The indexes reflect the socioeconomic well-being of an Electoral Division rather than of individuals. Because all people in an Electoral Division are not identical, the index scores do not apply to individuals but rather the way people are summed together for the area.

       The degree of heterogeneity within a Collection District influences the index score of that Collection District and hence the Electoral Division; the more homogeneous Collection Districts tend towards the extreme index scores.

       Partly because of the above, the interpretation of the index is more straightforward for Electoral Divisions that have extreme values. For example, it is usually easy to see why an Electoral Division with a high index score has that status, but it is more difficult to draw comparisons between Electoral Divisions with mid-ranked scores.

Highlights

The following section provides comment on the main features of each index. Because of the similar variables used to construct each index there are certain similarities in the rankings of Electoral Divisions for the various indexes. For instance, the divisions of Bradfield and North Sydney are ranked highest on each index while the divisions of Fowler and Bonython are the two lowest ranked divisions for three out of the four indexes. A number of divisions in the north shore area of Sydney and in the eastern suburbs of Melbourne appear in the top twenty rankings for each index. Similarly a number of rural and outer-metropolitan divisions appear in the bottom twenty rankings for all indexes.

Index of Relative Socioeconomic Advantage/Disadvantage

This index measures the relative social and economic well-being of the area. It combines attributes of relative advantage (high incomes, skilled workforce etc.) with attributes of relative disadvantage (low incomes, unskilled workforce etc.). The Electoral Division with the highest index score is the Sydney north shore division of Bradfield, while the division with the lowest score is the northern Adelaide division of Bonython. The median divisions (index score where there are an equal number of divisions above and below that score) are the southern New South Wales division of Hume and the inner-Melbourne division of Batman.

Most of the twenty highest ranked divisions are located on the north shore of Sydney (Bradfield, North Sydney, Warringah, Berowra, Mackellar and Bennelong) and in the eastern suburbs of Melbourne (Kooyong, Higgins, Goldstein and Menzies). Other divisions to feature in the top twenty are the traditionally well-off areas of Brisbane (Ryan) and Perth (Curtin) and the two ACT divisions (Canberra and Fraser). The increasing gentrification of inner city areas is illustrated by the high ranking of inner city divisions of Melbourne Ports, Sydney, Brisbane and Melbourne. No South Australian or Tasmanian divisions feature in the top twenty. Fourteen of the top twenty divisions are held by the Liberal Party while the rest are held by the Labor Party.

Divisions with a low score are typically either outer-suburban or rural. Of the twenty divisions with the lowest score, six are outer-suburban (Fowler and Chifley in Sydney, Oxley and Longman in Brisbane and Bonython in Adelaide and Brand in Perth) and twelve are rural (Cowper, Page, Lyne and Gwydir in New South Wales, Wide Bay, Hinkler and Blair in Queensland, Barker, Grey and Wakefield in South Australia and Braddon and Lyons in Tasmania). Only one inner-city division features in the bottom twenty (Port Adelaide). Political representation among the twenty lowest ranked divisions is almost even with eleven divisions held by the Coalition and nine held by the Labor Party.

Index of Relative Socioeconomic Disadvantage

This index measures the relative social and economic hardship in an area and to a certain extent displays a similar pattern to the Index of Relative Socioeconomic Advantage although a high score reflects a lack of disadvantage rather than high advantage. To maintain consistency with the other indexes, the higher an area's index value for the Index of Relative Socioeconomic Disadvantage, the less disadvantaged that area is compared to other areas. The Electoral Division with the highest score is Bradfield while the division with the lowest score is the western Sydney division of Fowler. The median divisions are the inner Melbourne division of Wills and the Gold Coast division of Moncrieff.

As with the Index of Socioeconomic Advantage/Disadvantage, most of the twenty highest ranked divisions are located on the north shore of Sydney (Bradfield, North Sydney, Warringah, Berowra, Mackellar and Bennelong) or in the eastern suburbs of Melbourne (Kooyong, Higgins, Goldstein and Menzies). Two southern Sydney divisions (Hughes and Cook), together with three Perth divisions (Curtin, Tangney and Moore) also feature in the top twenty divisions. All but three of the top twenty divisions are held by the Liberal Party, the exceptions being the two Labor Party held divisions in the ACT (Canberra and Fraser) and Melbourne Ports.

Both inner and outer metropolitan divisions feature prominently in the lower ranked divisions, reflecting the lower incomes, low education attainment, high unemployment and unskilled occupations in those areas. Of the twenty lowest ranked divisions, six are inner metropolitan divisions (Reid, Blaxland and Watson in Sydney, Gellibrand and Maribyrnong in Melbourne and Port Adelaide), while seven are outer metropolitan divisions (Chifley, Fowler and Werriwa in Sydney, Holt in Melbourne, Oxley and Rankin in Brisbane and Bonython in Adelaide). Six rural divisions are also included in the twenty lowest ranked divisions (Page, Gwydir and Cowper in New South Wales, Wide Bay in Queensland, Braddon in Tasmania and Lingiari in the Northern Territory). All but four of the twenty lowest ranked divisions are held by the Labor Party, the remaining are held by the National Party.

An indication of the lack of homogeneity within a particular Electoral Division can be obtained by comparing the relative positions on the rankings between the Index of Advantage/Disadvantage and the Index of Disadvantage. For example, if an Electoral Division has a high proportion of people who are relatively well-off and a high proportion of people who are not so well-off, this will be reflected in a relatively high ranking on the Index of Advantage/Disadvantage and a relatively low ranking on the Index of Disadvantage. By this measure the two least homogenous divisions are the remote divisions of Lingiari in the Northern Territory and Kalgoorlie in Western Australia. Lingiari is ranked just under the median (74th) on the Index of Advantage/Disadvantage and is ranked the third lowest division on the Index of Disadvantage. Kalgoorlie is ranked just above the median (77th) on the Index of Advantage/Disadvantage yet is ranked in the lowest quintile (22nd) on the Index of Disadvantage. The inner metropolitan divisions of Watson in Sydney and Gellibrand and Melbourne display a similar pattern.

A number of rural divisions (Gippsland, Mallee and Wannon) exhibit the opposite pattern, i.e. ranked lower on the Index of Advantage/Disadvantage than on the Index of Disadvantage. This indicates a relatively high proportion of people who are disadvantaged and a relatively low proportion of people who are advantaged.

Index of Economic Resources

This index measures the economic resources or income and expenditure patterns of families. The Electoral Division with the highest index score is North Sydney, while the division with the lowest score is the Queensland rural division of Wide Bay. The median divisions are Hume and Wills.

As with the Index of Advantage/Disadvantage, and the Index of Disadvantage the top twenty places in the rankings for this index are dominated by divisions located in the well-off suburbs in the capital cities, although neither Adelaide nor Hobart divisions are included in the top twenty. Of the top twenty divisions, twelve are in Sydney, reflecting the high incomes, rents and mortgages in that city. Fifteen of the top twenty divisions are held by the Liberal Party, the remaining five are held by the Labor Party.

At the lower end of the rankings, rural divisions predominate, reflecting low family incomes and low rental and mortgage payments in rural Australia. Only five of the twenty lowest ranked divisions are held by the Labor Party. The preponderance of rural divisions at the lower end of the rankings is further emphasised by the fact that the National Party holds no divisions with a ranking over 45.

Index of Education and Occupation

The Index of Education and Occupation is designed to reflect the educational and occupational structure of the population. Once again the highest ranked divisions are North Sydney and Bradfield and the lowest ranked divisions are Bonython and Fowler. The median divisions are Hume and Ballarat.

Once again the top twenty places in the rankings for this index are dominated by divisions located on the north shore of Sydney and in the eastern suburbs of Melbourne. Given the nature of the index, it is not surprising to find that a number of divisions with or near tertiary education institutions rank high on this index. The divisions of Grayndler (University of Sydney), Adelaide (University of Adelaide) and Kingsford Smith (University of NSW) are ranked much higher on this index than the other indexes. Given the more diverse spread of divisions in the top twenty it is not surprising to find that the political complexion is also more evenly spread. Of the top twenty divisions, the Liberal Party holds eleven, while the Labor Party holds nine.

Rural and outer metropolitan divisions predominate at the bottom end of the rankings, reflecting the lack of tertiary education opportunities and professional occupational groups in those areas. Out of the twenty, divisions at the lower end of the rankings, the Labor Party holds eleven divisions, while the Liberal Party holds five and the National Party three.

Endnotes

1. A. Kopras, 'Electorate Rankings: Census 2001', Research Paper No. 2 200203, Department of the Parliamentary Library, 2003.

2. Australian Bureau of Statistics, Census of Population and Housing: Socio-Economic Indexes for Area, Australia, 2001, Information Paper, Cat. No. 2039.0 ABS Canberra, 2003.


Index of Relative Socioeconomic Advantage/Disadvantage

Electoral Division

Party

Index

 

Electoral Division

Party

Index

 

 

 

 

 

 

 

Adelaide (SA)

LIB

1,053

 

Hunter (NSW)

ALP

943

Aston (Vic)

LIB

1,055

 

Indi (Vic)

LIB

965

Ballarat (Vic)

ALP

963

 

Isaacs (Vic)

ALP

999

Banks (NSW)

ALP

1,020

 

Jagajaga (Vic)

ALP

1,076

Barker (SA)

LIB

923

 

Kalgoorlie (WA)

LIB

989

Barton (NSW)

ALP

1,038

 

Kennedy (Qld)

IND

939

Bass (Tas)

ALP

947

 

Kingsford Smith (NSW)

ALP

1,069

Batman (Vic)

ALP

989

 

Kingston (SA)

ALP

946

Bendigo (Vic)

ALP

948

 

Kooyong (Vic)

LIB

1,175

Bennelong (NSW)

LIB

1,114

 

La Trobe (Vic)

LIB

1,028

Berowra (NSW)

LIB

1,140

 

Lalor (Vic)

ALP

979

Blair (Qld)

LIB

932

 

Leichhardt (Qld)

LIB

990

Blaxland (NSW)

ALP

951

 

Lilley (Qld)

ALP

1,021

Bonython (SA)

ALP

882

 

Lindsay (NSW)

LIB

1,014

Boothby (SA)

LIB

1,054

 

Lingiari (NT)

ALP

987

Bowman (Qld)

ALP

1,002

 

Longman (Qld)

LIB

928

Braddon (Tas)

ALP

908

 

Lowe (NSW)

ALP

1,095

Bradfield (NSW)

LIB

1,204

 

Lyne (NSW)

NP

925

Brand (WA)

ALP

933

 

Lyons (Tas)

ALP

908

Brisbane (Qld)

ALP

1,103

 

Macarthur (NSW)

LIB

997

Bruce (Vic)

ALP

1,017

 

Mackellar (NSW)

LIB

1,115

Burke (Vic)

ALP

991

 

Macquarie (NSW)

LIB

1,043

Calare (NSW)

IND

963

 

Makin (SA)

LIB

985

Calwell (Vic)

ALP

968

 

Mallee (Vic)

NP

943

Canberra (ACT)

ALP

1,123

 

Maranoa (Qld)

NP

939

Canning (WA)

LIB

976

 

Maribyrnong (Vic)

ALP

960

Capricornia (Qld)

ALP

965

 

Mayo (SA)

LIB

1,035

Casey (Vic)

LIB

1,020

 

McEwen (Vic)

LIB

991

Charlton (NSW)

ALP

969

 

McMillan (Vic)

ALP

951

Chifley (NSW)

ALP

933

 

McPherson (Qld)

LIB

985

Chisholm (Vic)

ALP

1,077

 

Melbourne (Vic)

ALP

1,095

Cook (NSW)

LIB

1,085

 

Melbourne Ports (Vic)

ALP

1,144

Corangamite (Vic)

LIB

1,004

 

Menzies (Vic)

LIB

1,101

Corio (Vic)

ALP

949

 

Mitchell (NSW)

LIB

1,145

Cowan (WA)

ALP

1,002

 

Moncrieff (Qld)

LIB

994

Cowper (NSW)

NP

922

 

Moore (WA)

LIB

1,064