Australia Struggling To Be a Country of Opportunity

Australia Struggling To Be a Country of Opportunity

New research released throws into question whether Australia really is the -lucky' country – the land of the -fair go' where children are able to reach their potential regardless of their background.

The AMP funded report, released by The Smith Family and NATSEM, Unequal Opportunities: Life Chances for Children in the -Lucky Country', is the first report in a series that looks at factors influencing children's life chances in Australia.

'This research looks at social mobility between generations and equality of opportunity as key indicators essential to our country's progress; from an equity perspective but also an economic perspective. It demonstrates an urgent need for action to change the status quo for those living in disadvantage," explains Dr Lisa O'Brien, CEO of The Smith Family.

The report analyses social mobility, revealing that for adults (currently 30 to 45 years old), higher wage and educational attainment levels are much more likely for those who come from well-off families, than for those from poorer families:
On average wages are $7 per hour greater for those whose father had a university degree than those whose father only achieved Year 10 or below - a difference in earning capacity of approximately $280 per week or $14,500 per annum
More than 65% of those who had a father with a university degree also achieved a university degree, compared with 30% of those whose father attained Year 10 or below
50% of those people whose fathers were managers or professionals ended up in occupations associated with high social economic status (SES), compared with less than 28% of those whose fathers were in the least well paid and lowest status occupations

Dr O'Brien comments: 'These measures paint a disheartening picture and suggest that Australia has a way to go to reflect the equitable and fair values that we as a society believe in.

'The importance of education and sufficient financial resources to equip children and youth with the skills they need to succeed in life, to open doors and enhance social mobility, are well documented. So how is Australia faring for the next generation?"

NATSEM co-author of the report, Senior Research Fellow Rebecca Cassells noted: 'Our findings show the division that exists between children from poorer families compared to those in well-off families is extensive, with children living in the richest households having over $40,000 per year more in household income than those children living in the poorest Australian families."

The report finds concerning levels of disadvantage still persist and limit access to opportunities for many Australian children:
Children living in the richest households have on average 3.1 times the household income of children living in the poorest household, which equates to over $40,000 a year
12.7% of dependent children and youth live in households where no adult is engaged in paid work
75% of children living in a jobless household have done so for two years, an indication of the entrenched nature of this disadvantage

Managing Director of AMP Financial Services Craig Meller said the report highlights the importance of external influences on social mobility.

'We like to think that all children, regardless of their background, have the chance to realise their potential. However it's clear that education, financial stability and employment play key roles in what is a significant gap in social equality for young Australians," Mr Meller said.

For children growing up in jobless households, education essentials, like uniforms and a computer, can be difficult to access. When children are unable to -fit in', their confidence, self-esteem and aspirations are likely to suffer.

As these children grow up, the report shows that parents may also struggle to offer guidance with school work and career choices and they can be further impacted by the lack of role models in their extended family network helping to influence job and study choices.

For example, the report reveals that students from low SES backgrounds only account for 15% of all students enrolled in a bachelor level degree, and the figure is not getting closer to the 20% set by the government in 2008 after the Bradley Review. This is likely to be a reflection of an increased necessity for some would-be students to remain in the labour force, increasing education costs and lack of role models.

Dr Lisa O'Brien, CEO of The Smith Family summarises the need for society to be able to provide all children with access to opportunities saying, 'The evidence is profound and the economics clear that early intervention in the lives of disadvantaged children is the most powerful way to ensure a better start in life for the next generation. This requires a new approach to education that recognises the multitude of skills that children need to thrive in a modern society, and the relationships they need to support them in their learning across the life course."

The Smith Family helps disadvantaged Australians to get the most out of their education, by providing financial support for education essentials, but also by enabling them to develop their skills and capacities through literacy programs and mentoring support.

'All Australians need to recognise and act upon the responsibility we share in ensuring children today and our future generations do not continue to fall through the cracks as they have done in the past. Enabling these children to thrive, rather than survive, will change the future for all Australians and bring a whole range of better outcomes for our society," concludes Dr O'Brien.