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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. Copyright (c) The London School of Economics and Political Science 2005.

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(3), pages 469-495, August.
  • Handle: RePEc:bla:econom:v:72:y:2005:i:3:p:469-495
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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. Afridi, Farzana & Dinkelman, Taryn & Mahajan, Kanika, 2016. "Why Are Fewer Married Women Joining the Work Force in India? A Decomposition Analysis over Two Decades," IZA Discussion Papers 9722, Institute for the Study of Labor (IZA).
    5. Jessica Dye & Stephanié 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.
    6. Francisco Ferreira, 2010. "Distributions in motion: Economic growth, inequality, and poverty dynamics," Working Papers 183, ECINEQ, Society for the Study of Economic Inequality.
    7. Arthur Grimes, 2004. "New Zealand: A Typical Australasian Ecomony?," Working Papers 04_11, Motu Economic and Public Policy Research.
    8. Biewen, Martin, 2012. "Additive Decompositions with Interaction Effects," IZA Discussion Papers 6730, Institute for the Study of Labor (IZA).
    9. Peichl, Andreas & Pestel, Nico, 2014. "Earnings Inequality," IZA Policy Papers 89, Institute for the Study of Labor (IZA).
    10. 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.
    11. A. B. Atkinson & Andrew Leigh, 2005. "The Distribution of Top Incomes in New Zealand," CEPR Discussion Papers 503, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    12. Olivier Bargain, 2012. "Decomposition analysis of distributive policies using behavioural simulations," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(5), pages 708-731, October.

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