The Distributional Impact of KiwiSaver Incentives
AbstractNew Zealand’s approach to retirement incomes profoundly changed with the recent introduction of KiwiSaver and its associated tax incentives. Previous policy reduced lifetime inequality but KiwiSaver and its tax incentives will increase future inequality and lead to diverging living standards for the elderly. In this paper we evaluate the distributional effects of these tax incentives. Using data from a nationwide survey conducted by the authors, we estimate the value of the equivalent income transfer provided to individuals by the tax incentives for KiwiSaver participation. Concentration curves and inequality decompositions are used to compare the distributive impact of these tax incentives with those for New Zealand Superannuation. Estimates are reported for both initial and lifetime impacts, with the greatest effect on inequality apparent in the lifetime impacts.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 08/02.
Length: 17 pages
Date of creation: 20 Feb 2008
Date of revision:
Contact details of provider:
Postal: Private Bag 3105, Hamilton, New Zealand, 3240
Phone: + 64 (0)7 838 4758 (Administrator)
Fax: + 64 7 838 4331
Web page: http://cms.mngt.waikato.ac.nz/departments/economics
More information through EDIRC
distributive impact; KiwiSaver; retirement saving; tax incentives;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-02-23 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John, Susan St. & Willmore, Larry, 2001. "Two Legs are Better than Three: New Zealand as a Model for Old Age Pensions," World Development, Elsevier, vol. 29(8), pages 1291-1305, August.
- John Gibson, 2008.
"The Rising Public Sector Pay Premium in the New Zealand Labour Market,"
Working Papers in Economics
08/16, University of Waikato, Department of Economics.
- John Gibson, 2009. "The rising public sector pay premium in the New Zealand labour market," New Zealand Economic Papers, Taylor & Francis Journals, vol. 43(3), pages 255-261.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Brian Silverstone).
If references are entirely missing, you can add them using this form.