Income Growth and Earnings Variations in New Zealand, 1998-2004
AbstractThis article analyses changes in the distributions of working-age individuals' earnings and total income in New Zealand over the period 1998-2004. We find that there have been broad gains in income across the distribution, suggesting the spoils of growth have been shared widely. Mean and median earnings increased 15 and 23 per cent respectively, while mean and median income increased 12-13 per cent. Inequality, as measured by the Gini coefficient, was more stable: earnings inequality fell 4 per cent, while income inequality was unchanged. The main drivers of the changes were employment and real wage growth. We estimate that roughly one-half of the growth in average incomes was due to employment growth, and one-quarter each to demographic changes and wage growth. The relative employment and wage contributions varied across the income distribution: employment growth dominated gains at the lower end of the distribution, while wage gains dominated changes at the higher end. Copyright 2006 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.
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Bibliographic InfoArticle provided by The University of Melbourne, Melbourne Institute of Applied Economic and Social Research in its journal Australian Economic Review.
Volume (Year): 39 (2006)
Issue (Month): 3 (09)
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Postal: The University of Melbourne, Victoria 3010
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Other versions of this item:
- Dean Hyslop & Suresh Yahanpath, 2005. "Income Growth and Earnings Variations in New Zealand, 1998—2004," Treasury Working Paper Series 05/11, New Zealand Treasury.
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- NZ inequality statistics: Some of the research
by Matt Nolan in The Invisible Hand in Economics on 2013-11-25 19:00:32
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- Richard Fabling & Arthur Grimes, 2009. "The "suite" smell of success: complementary personnel practices and firm performance," Reserve Bank of New Zealand Discussion Paper Series DP2009/13, Reserve Bank of New Zealand.
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