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Understanding New Zealand's Changing Income Distribution, 1983–1998: A Semi‐parametric Analysis

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  • Dean R. Hyslop
  • David C. Maré

Abstract

This paper analyses income distribution changes in New Zealand between 1983 and 1998. We use a semi‐parametric kernel density approach and a range of inequality summary measures to assess the distributional effects of changes in five sets of factors: household structure, National Superannuation (old age pension), socio‐demographic attributes, employment outcomes, and ‘economic returns’ to such attributes and employment outcomes. Changes in household structure and attributes are the main factors contributing to the rise in inequality. Employment changes and changing returns had a more modest impact. The results are qualitatively robust to a variety of equivalization, income, and weighting measures.

Suggested Citation

  • Dean R. Hyslop & David C. Maré, 2005. "Understanding New Zealand's Changing Income Distribution, 1983–1998: A Semi‐parametric Analysis," Economica, London School of Economics and Political Science, vol. 72(287), pages 469-495, August.
    • Handle: RePEc:bla:econom:v:72:y:2005:i:287:p:469-495
    DOI: 10.1111/j.0013-0427.2005.00426.x
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    Cited by:

    1. Juan D. Barón & Deborah A. Cobb‐Clark, 2010. "Occupational Segregation and the Gender Wage Gap in Private‐ and Public‐Sector Employment: A Distributional Analysis," The Economic Record, The Economic Society of Australia, vol. 86(273), pages 227-246, June.
    2. Olympia Bover, 2010. "Wealth Inequality And Household Structure: U.S. Vs. Spain," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(2), pages 259-290, June.
    3. David Johnston & Wang-Sheng Lee, 2011. "Explaining the Female Black-White Obesity Gap: A Decomposition Analysis of Proximal Causes," Demography, Springer;Population Association of America (PAA), vol. 48(4), pages 1429-1450, November.
    4. Martin Biewen & Miriam Sturm, 2021. "Why a Labour Market Boom Does Not Necessarily Bring Down Inequality: Putting Together Germany’s Inequality Puzzle," SOEPpapers on Multidisciplinary Panel Data Research 1139, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Nolan, Matt, 2018. "Did tax-transfer policy change New Zealand disposable income inequality between 1988 and 2013?," Working Paper Series 20842, Victoria University of Wellington, Chair in Public Finance.
    6. John Creedy & Nicolas Hérault, 2011. "Decomposing Inequality and Social Welfare Changes: The Use of Alternative Welfare Metrics," Melbourne Institute Working Paper Series wp2011n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    7. Francisco Ferreira, 2010. "Distributions in motion: Economic growth, inequality, and poverty dynamics," Working Papers 183, ECINEQ, Society for the Study of Economic Inequality.
    8. David Black & Yi-Ping Tseng & Roger Wilkins, 2009. "Examining the Role of Demographic Change in the Decline in Male Employment in Australia: A Propensity Score Re-weighting Decomposition Approach," Melbourne Institute Working Paper Series wp2009n24, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    9. Nolan, Matt, 2018. "Income Tax and Transfer Policy Changes in New Zealand: 1988-2013," Working Paper Series 20839, Victoria University of Wellington, Chair in Public Finance.
    10. Biewen, Martin & Fitzenberger, Bernd & Seckler, Matthias, 2020. "Counterfactual quantile decompositions with selection correction taking into account Huber/Melly (2015): An application to the German gender wage gap," Labour Economics, Elsevier, vol. 67(C).
    11. Jessica Dye & Stephani� Rossouw & Gail Pacheco, 2012. "Well-being of women in New Zealand: The changing landscape," New Zealand Economic Papers, Taylor & Francis Journals, vol. 46(3), pages 273-302, December.
    12. Brall, Franziska & Schmid, Ramona, 2020. "Automation, robots and wage inequality in Germany: A decomposition analysis," Hohenheim Discussion Papers in Business, Economics and Social Sciences 14-2020, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    13. Biewen, Martin, 2012. "Additive Decompositions with Interaction Effects," IZA Discussion Papers 6730, Institute of Labor Economics (IZA).
    14. Garcia-Medina Cecilia, 2016. "You, Me and the Mean: a Semiparametric Approach to the Redistributive Effects of Transfer Programs," Working Papers 2016-16, Banco de México.
    15. Omoniyi B. Alimi & David C. Maré & Jacques Poot, 2022. "Who partners up? Homogamy and income inequality in New Zealand cities," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 171-193, January.

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