Understanding New Zealand<92>s Changing Income Distribution 1983<96>98:A Semiparametric Analysis

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Understanding New Zealand<92>s Changing Income Distribution 1983<96>98:A Semiparametric Analysis

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Dean R. Hyslop
David C. Maré

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Abstract

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 <93>economic returns<94> 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. We find that changes in household structure and in the socio-demographic characteristics of households are the main factors contributing to the rise in inequality, while the large changes in the employment outcomes had a more modest impact, and there is little evidence of systematic effects of changes in the economic returns. The results are qualitatively robust to a variety of equivalisation, income, and weighting measures.

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Paper provided by EconWPA in its series Microeconomics with number 0402014.

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Date of creation: 15 Feb 2004
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Handle: RePEc:wpa:wuwpmi:0402014

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Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
I30 - Health, Education, and Welfare - - Welfare and Poverty - - - General

This paper has been announced in the following NEP Reports:

NEP-ALL-2004-02-23 (All new papers)
NEP-EDU-2004-02-23 (Education)

References listed on IDEAS
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Mary C. Daly & Robert G. Valletta, 2000. "Inequality and poverty in the United States: the effects of changing family behavior and rising wage dispersion," Working Papers in Applied Economic Theory 2000-06, Federal Reserve Bank of San Francisco. [Downloadable!]
Lars Osberg, 1998. "Economic Insecurity," Discussion Papers 0088, University of New South Wales, Social Policy Research Centre. [Downloadable!]
Des O'Dea, 2000. "The Changes in New Zealand's Income Distribution," Treasury Working Paper Series 00/13, New Zealand Treasury. [Downloadable!]
Danziger, Sheldon & Taussig, Michael K, 1979. "The Income Unit and the Anatomy of Income Distribution," Review of Income and Wealth, Blackwell Publishing, vol. 25(4), pages 365-75, December.

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