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Inter-Decile Income Movements of Individuals in New Zealand: Evidence from Administrative Data

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  • Alinaghi, Nazila
  • Creedy, John
  • Gemmell, Norman

Abstract

This paper provides an empirical description of the income mobility of individual incomes in New Zealand over the period 2002 to 2017, using information from transition matrices. These capture movements of individual taxpayers between deciles of the income distribution over periods ranging from one to fifteen years. Transitions for sample decompositions by age, gender, ethnicity and education level are also explored. Though 1-year transitions indicate considerable inertia or stability, a relatively high degree of movement between deciles is observed across most of the distribution over longer periods. Different age, gender, ethnicity and educational qualification decompositions reveal remarkably similar patterns of inter-decile movement.

Suggested Citation

  • Alinaghi, Nazila & Creedy, John & Gemmell, Norman, 2022. "Inter-Decile Income Movements of Individuals in New Zealand: Evidence from Administrative Data," Working Paper Series 21357, Victoria University of Wellington, Chair in Public Finance.
    • Handle: RePEc:vuw:vuwcpf:21357
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    References listed on IDEAS

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    1. John Creedy & Norman Gemmell, 2022. "Illustrating Income Mobility and Poverty Persistence," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 55(2), pages 309-323, June.
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    5. Creedy, J, 1996. "Income Dynamics Over the Life Cycle: New Evidence for New Zealand," Department of Economics - Working Papers Series 511, The University of Melbourne.
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