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Objective 3: Identifying Determinants of Unequal Opportunities and Outcomes
Objective 3 seeks to understand the evolution of the distribution (and, to the extent possible, the causes) of outcomes in New Zealand. We estimate the determinants of changes in income and consumption, looking separately at individual and family outcomes, and investigate also intra-family distribution of resources. Our research also examines the links between changes in the distribution of outcomes and characteristics such as education, location, and ethnicity (measured prior to the changes). We also estimate endogenous responses to economic shocks. These responses may operate through changes in education, location, etc, as well as through the operation of land and labour markets. Understanding both the importance of different characteristics as drivers of inequality and how individuals and communities can change their characteristics is critical for policy.
Annotated Bibliography
Incomes
Ballantyne, Suzie; Simon Chapple, David C. Maré, Jason Timmins. 2004. ‘Triggering Movements Into and Out of Child Poverty: A Comparative Study of New Zealand, Britain and West Germany,’ Social Policy Journal of New Zealand, 22, pp. 83-96.
Ballantyne, Suzie; Simon Chapple, David C. Maré, Jason Timmins. 2003. ‘Movements Into And Out Of Child Poverty In New Zealand: Results From The Linked Income Supplement,’ Motu Working Paper 03-13.
We know quite a lot about cross-sectional child poverty rates. But we want to move closer to answering the dynamic question of why children move into and out of poverty. Using a longitudinal data set developed out of the Income Supplement to the Household Labour Force Survey, this research examines trigger events (like losing a job or losing an adult from the household) and responses to these triggers by families, as a means of considering child poverty dynamics in New Zealand. It compares New Zealand’s dynamic experiences with Britain and West Germany.
Coleman, Andrew; Sylvia Dixon and David C. Maré. 2005. ‘Māori economic development - Glimpses from statistical sources,’ Motu Working Paper 05-13.
This draft book chapter provide an overview of Māori economic development during the past 150 years, drawing on readily available statistical and historical sources. The path of Māori economic development that we have traced through statistical evidence is one of ongoing change and adaptation, as well as one of substantial increase in material standards of living, albeit with periods of significant setback.
Dixon, Sylvia and David C. Maré. 2005. ‘Changes in the Māori Income Distribution: Evidence from the Population Census,’ Motu Working Paper 05-06.
This paper uses census data to identify the main changes in the individual-level income distribution of working-aged Māori between 1991 and 2001, and to analyse the effects of changes in the distribution of sociodemographic attributes and labour market activity patterns on the Māori income distribution.
Dixon, Sylvia and David C. Maré. 2007. “Understanding changes in Māori incomes and income inequality 1997-2003,’ Journal of Population Economics, 20:3, pp. 571-98.
Dixon, Sylvia and David C. Maré. 2004. “Understanding changes in Māori incomes and income inequality 1997-2003,’ Motu Working Paper 04-12.
This paper reports findings from a study of changes in Māori income levels and income dispersion between 1997 and 2003. Data from Statistics New Zealand’s Income Survey are used to describe and evaluate the main changes in the Māori income distribution in this period, which was marked by substantial increases in employment rates and improvements in the skill levels of working-aged Māori. A parallel analysis of the main changes in the European/Pākehā income distribution is provided for comparative purposes.
Hyslop, Dean and David C. Maré. 2005. ‘Understanding New Zealand’s Changing Income Distribution 1983-98: A Semiparametric Analysis,’ Economica, 72:3, pp. 469-96
Hyslop, Dean and David C. Maré. 2003. ‘Understanding New Zealand’s Changing Income Distribution 1983-98: A Semiparametric Analysis,’ Motu Working Paper 03-16.
This paper analyses changes in the distribution of equivalised gross household income and income inequality in New Zealand between 1983 and 1998. We analyse the distributional effects of changes in household structure, National Superannuation (old age pension), household socio-demographic attributes and employment outcomes, and in the “economic returns” to such attributes and employment outcomes, using a semiparametric kernel density approach, and assess the impact of these factors on alternative summary measures of inequality over the period.
Hyslop, Dean and Steven Stillman. 2007. “Youth Minimum Wage Reform and the Labour Market,’ Labour Economics, 14:2, pp. 201-30.
This paper analyses the effects of a large reform in the minimum wages affecting youth workers in New Zealand since 2001. We use data from the New Zealand Household Labour Force Survey (HLFS) to estimate the impact of these changes on a variety of labour market and related outcomes.
Karagedikli, O., Maré, D C & Poot, J. 2001. “Disparities and Despair: Changes in regional income distributions in New Zealand 1981-96” Australasian Journal of Regional Studies, 6:3, pp. 323-47.
Karagedikli, Özer; David C. Maré and Jacques Poot. 2003. ‘Description and analysis of changes in New Zealand Regional Income Distributions, 1981-1996”, Chapter 11 in: Gomez, E. & Stephens, R (eds) (2003) “The State, Economic Development and Ethnic Co-existence in Malaysia and New Zealand”, CEDR, University of Malaya, Kuala Lumpur.
Papps, Kerry. 2004. “Income Inequality and Gender in New Zealand, 1998-2003”, IZA Discussion Paper 1365
A number of authors have documented an increase in earnings or income inequality in New Zealand during the late 1980s and early 1990s, a period of major economic reform, however no study has evaluated changes in inequality during the post-reform era. This paper applies a recently-developed method for decomposing changes in inequality to New Zealand income and earnings data and extends it to analyse changes in inequality between men and women.
Sin, Isabelle and David C. Maré. 2004. “Māori Incomes: Investigating Differences Between Iwi” Motu Working Paper 04-06
This paper investigates several factors that may be important for improving Māori outcomes, and the extent to which their importance varies by iwi. Specifically, it examines the extent to which controlling for differences in characteristics of the European population and the populations of various iwi can account for the differences in income distribution between the groups.
Crawford, Ron. 2009. ‘Variations in Earnings Growth: Evidence from Earnings Transitions in the NZ Linked Income Survey,’ Motu Working Paper 09-07.
Gibson, John; Trinh Le and Steven Stillman. 2007. “What Explains the Wealth Gap Between Immigrants and the New Zealand Born?” New Zealand Economic Papers, 41:2, pp. 131-162.
Warburton, Dale and Philip Morrison. 2008. “Domestic responsibilities and the employment of young Maori women,’ Kotuitui: New Zealand Journal of Social Sciences Online, 3, pp. 149-167.
Education
Stillman, Steven. 2006. “Trends in Youth Activity in New Zealand from 1985-2004,” New Zealand Department of Labour Research Paper (July).
Hyslop, Dean and David C. Maré. 2009. “Skill Upgrading in New Zealand, 1986-2001,’ Australian Economic Review, 42:4, pp. 422-434.
Hyslop, Dean; David C. Maré and Jason Timmins. 2003. “Qualifications, Employment and the Value of Human Capital, 1986-2001” Treasury Working Paper 03/35
This paper summarises the changing nature of qualifications across the working age population in New Zealand over the period from 1986 to 2001, and investigates the relationships between the changing qualification distribution and employment and income.
Maré, David C. and Yun Liang. 2006. “Labour Market Outcomes for Young Graduates: Part A: Main Report and Part B: Field of Study Profiles,” Motu Working Paper 06-06.
This paper examines income and employment outcomes for 18 to 30 year old New Zealanders with post-school qualifications, using data from the 1996 and 2001 Censi. Outcomes are analysed by field of study, to highlight the variation in outcomes within the post-school graduate (PSG) population.
Health
Maani, Sholeh; Rhema Vaithianathan and Barbara Wolfe. 2006. “Inequality and Health: Is Housing Crowding the Link?” Motu Working Paper 06-09.
In this study we extend the literature by proposing a new mechanism through which income inequality can influence health. We argue that increased income inequality induces household crowding, which in turn leads to increased rates of infectious diseases. Our results provide support for a differential effect of income inequality and housing crowding on rates of hospital admissions for infectious diseases among children.
Slack Adrian; Jackie Cumming, David C. Maré and Jason Timmins. 2002. “Variations in Secondary Care Utilisation and Geographic Access - Initial Analysis of 1996 Data” HSRC Discussion Paper No. 7.
This paper reports findings from a pilot study summarising variations in utilisation rates for publicly funded secondary health care services in New Zealand during 1996. Economic and geographic approaches are combined to focus on the relationship between distance and access using linked national datasets including the health service-related National Minimum Data Set (NMDS), Census data and a hospital location data set. We develop a conceptual framework for access in New Zealand’s health system and demonstrate a method for explaining geographic variations in utilisation. The study tests the simple hypothesis that health care utilisation falls the further a patient lives from the service.