Abstract

The weight of evidence suggests a positive correlation between income and subjective wellbeing, particularly at lower income levels. This correlation can be used as a policy lever to influence behaviour. This relationship has not been analysed, however, for Aboriginal and Torres Strait Islander (Indigenous) Australians – a policy-relevant population sub-group. This paper finds that the correlation between income and two measures of wellbeing, while positive for non-remote Indigenous males, is weaker for non-remote Indigenous females and virtually non-existent for remote Indigenous males and females. If wellbeing is not based on income, income-based incentive programmes may be less effective.