The Role of Education in Regional Income Determination - a Cross Sectional Study of Small Areas in Queensland

This study explores cross regional variation of income within Queensland. This is done using data from the 2001 Census of Population and Housing conducted by the Australian Bureau of Statistics. Of particular interest is the role that education has played in regional income determination. The study commences with an analysis of the spatial pattern of regional income levels in Queensland. A formal model that includes a role for education in determining differences in income levels is developed and the census data is used to test the validity of the model. It is found that education is a significant determinant of the cross regional variation in income levels, with both higher education and vocational training playing a role in this difference.