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Understanding New Zealand s Changing Income Distribution 1983 98:A Semiparametric Analysis

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  • Dean R. Hyslop
  • David C. Maré

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 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. 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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File URL: http://128.118.178.162/eps/mic/papers/0402/0402014.pdf
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Bibliographic Info

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

Note: Type of Document - pdf; prepared on Word 2000; to print on pc;
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Web page: http://128.118.178.162

Related research

Keywords: Household income distribution; Inequality; Kernel density estimation;

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  1. Jenkins, S., 1988. "The Measurement Of Economic Inequality," Papers 170, Australian National University - Department of Economics.
  2. Danziger, Sheldon & Taussig, Michael K, 1979. "The Income Unit and the Anatomy of Income Distribution," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(4), pages 365-75, December.
  3. 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 Paper Series 2000-06, Federal Reserve Bank of San Francisco.
  4. Des O'Dea, 2000. "The Changes in New Zealand's Income Distribution," Treasury Working Paper Series 00/13, New Zealand Treasury.
  5. Lars Osberg, 1998. "Economic Insecurity," Discussion Papers 0088, University of New South Wales, Social Policy Research Centre.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. 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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Cited by:
  1. Ferreira , Francisco H. G., 2010. "Distributions in motion: economic growth, inequality, and poverty dynamics," Policy Research Working Paper Series 5424, The World Bank.

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