Urban and Rural Estimates of Poverty

This paper reports on NATSEM's spatial microsimulation methodology and shows how it can be used to estimate poverty in urban areas. The methodology is first described, and then maps of poverty are shown for Australia and capital cities. Further analysis of poverty rates in capital cities is then conducted. We find that poverty rates tend to be higher in Adelaide, Perth, Hobart and Darwin compared to Sydney, Melbourne, Canberra and Brisbane. Poverty rates within urban areas show how areas of poverty congregate. We also find that areas of high poverty are frequently 'buffered' by areas of moderate poverty. This is not always the case, as in some areas we find high poverty neighbouring a low poverty area but, generally, there tends to be a moderate poverty small area 'buffer'.