IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v80y2004i248p101-124.html

Why Have Maori Relative Income Levels Deteriorated Over Time?

Author

Listed:
  • Sholeh A. Maani

Abstract

In 1986 two thirds of the Maori population had left secondary school by age 16 without school qualifications. A decade later, while educational attainment of the New Zealand population had increased significantly, over 60 per cent of the Maori population remained without qualifications. This paper provides comprehensive evidence on how income returns to postcompulsory and higher education have contributed to a widened income gap over the decade following the economic reforms. Utilising individual‐level Census data for 1986 and 1996, stability tests and decompositions, it establishes the significance of educational attainment as a strategy for reducing disparity. An important feature of the study is the distinction between full and part‐Maori.

Suggested Citation

  • Sholeh A. Maani, 2004. "Why Have Maori Relative Income Levels Deteriorated Over Time?," The Economic Record, The Economic Society of Australia, vol. 80(248), pages 101-124, March.
    • Handle: RePEc:bla:ecorec:v:80:y:2004:i:248:p:101-124
    DOI: 10.1111/j.1475-4932.2004.00128.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4932.2004.00128.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-4932.2004.00128.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Daly, Anne, 1993. "The Determinants of Employment for Aboriginal People," Australian Economic Papers, Wiley Blackwell, vol. 32(60), pages 134-151, June.
    2. Dougherty, Christopher R. S. & Jimenez, Emmanuel, 1991. "The specification of earnings functions: Tests and implications," Economics of Education Review, Elsevier, vol. 10(2), pages 85-98, June.
    3. Lewis Evans & Arthur Grimes & Bryce Wilkinson, 1996. "Economic Reform in New Zealand 1984-95: The Pursuit of Efficiency," Journal of Economic Literature, American Economic Association, vol. 34(4), pages 1856-1902, December.
    4. Sholeh A. Maani, 1996. "Private and Social Rates of Return to Secondary and Higher Education in New Zealand: Evidence from the 1991 Census," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 29(1), pages 82-100, January.
    5. Jere R. Behrman & Nancy Birdsall, 1987. "Comment on "Returns to Education: A Further International Update and Implications"," Journal of Human Resources, University of Wisconsin Press, vol. 22(4), pages 603-606.
    6. J. W. Nevile & Peter Saunders, 1998. "Globalization and the Return to Education in Australia," The Economic Record, The Economic Society of Australia, vol. 74(226), pages 279-285, September.
    7. Ronald L. Oaxaca & Michael R. Ransom, 1999. "Identification in Detailed Wage Decompositions," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 154-157, February.
    8. Jeff Borland, 1999. "Earnings Inequality in Australia: Changes, Causes and Consequences," The Economic Record, The Economic Society of Australia, vol. 75(2), pages 177-202, June.
    9. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
    10. Lang, Kevin, 1998. "The Effect of Trade Liberalization on Wages and Employment: The Case of New Zealand," Journal of Labor Economics, University of Chicago Press, vol. 16(4), pages 792-814, October.
    11. McNabb, Robert & Richardson, Sue, 1989. "Earnings, Education and Experience: Is Australia Different?," Australian Economic Papers, Wiley Blackwell, vol. 28(52), pages 57-75, June.
    12. repec:bla:ecorec:v:74:y:1998:i:226:p:279-85 is not listed on IDEAS
    13. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
    14. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
    15. Peter Kuhn & Arthur Sweetman, 2002. "Aboriginals as unwilling immigrants: Contact, assimilation and labour market outcomes," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(2), pages 331-355.
    16. John Gibson, 2000. "Sheepskin effects and the returns to education in New Zealand: Do they differ by ethnic groups?," New Zealand Economic Papers, Taylor & Francis Journals, vol. 34(2), pages 201-220.
    17. Heckman, James & Layne-Farrar, Anne & Todd, Petra, 1996. "Human Capital Pricing Equations with an Application to Estimating the Effect of Schooling Quality on Earnings," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 562-610, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Donna L. Feir, 2016. "The long‐term effects of forcible assimilation policy: The case of Indian boarding schools," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(2), pages 433-480, May.
    2. Maré, David C. & Benison, Thomas, 2025. "Ethnic Wage Differences in Aotearoa New Zealand," IZA Discussion Papers 18275, Institute of Labor Economics (IZA).
    3. Catherine Ris & Samuel Gorohouna, 2013. "Decomposing differences in employment outcomes between Kanak and other New Caledonians - how important is the role of school achievement?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 16(1), pages 115-135.
    4. Matthew Manning & Christopher L. Ambrey & Christopher M. Fleming, 2016. "A Longitudinal Study of Indigenous Wellbeing in Australia," Journal of Happiness Studies, Springer, vol. 17(6), pages 2503-2525, December.
    5. Maani, Sholeh A. & Wang, Xingang & Rogers, Alan, 2015. "Network Effects, Ethnic Capital and Immigrants' Earnings Assimilation: Evidence from a Spatial, Hausman-Taylor Estimation," IZA Discussion Papers 9308, Institute of Labor Economics (IZA).
    6. Srikanta Chatterjee & Nripesh Podder, 2007. "Some Ethnic Dimensions of Income Distribution from Pre‐ to Post‐reform New Zealand, 1984–1998," The Economic Record, The Economic Society of Australia, vol. 83(262), pages 275-286, September.
    7. Maani, Sholeh A. & Kalb, Guyonne, 2007. "Academic performance, childhood economic resources, and the choice to leave school at age 16," Economics of Education Review, Elsevier, vol. 26(3), pages 361-374, June.
    8. Dean Hyslop & Dave Maré, 2009. "Skill Upgrading in New Zealand, 1986–2001," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 42(4), pages 422-434, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sholeh A Maani, 2002. "Education and Maori Relative Income Levels over Time: The Mediating Effect of Occupation, Industry, Hours of Work and Locality," Treasury Working Paper Series 02/17, New Zealand Treasury.
    2. Niels-Hugo Blunch & Maitreyi Bordia Das, 2015. "Changing norms about gender inequality in education: Evidence from Bangladesh," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 32(6), pages 183-218.
    3. Garcia-Aracil, Adela & Winter, Carolyn, 2006. "Gender and ethnicity differentials in school attainment and labor market earnings in Ecuador," World Development, Elsevier, vol. 34(2), pages 289-307, February.
    4. A. Preston, 1996. "Where Are We Now With Human Capital Theory in Australia?," Economics Discussion / Working Papers 96-18, The University of Western Australia, Department of Economics.
    5. Dougherty, Christopher, 2003. "Why is the rate of return to schooling higher for women than for men?," LSE Research Online Documents on Economics 20034, London School of Economics and Political Science, LSE Library.
    6. Siphambe, Happy Kufigwa, 2000. "Rates of return to education in Botswana," Economics of Education Review, Elsevier, vol. 19(3), pages 291-300, June.
    7. Manuel Salas Velasco, 2004. "Rendimientos privados de las inversiones en educación superior a partir de ecuaciones de ingresos," Hacienda Pública Española / Review of Public Economics, IEF, vol. 169(2), pages 87-117, June.
    8. C Dougherty, 2003. "Why is the Rate of Return to Schooling Higher For Women Than For Men?," CEP Discussion Papers dp0581, Centre for Economic Performance, LSE.
    9. Hk Siphambe, 2008. "Rates Of Return To Education In Botswana: Results From The 2002/2003 Household Income And Expenditure Survey Data Set," South African Journal of Economics, Economic Society of South Africa, vol. 76(4), pages 641-651, December.
    10. Christie, Pamela & Shannon, Michael, 2001. "Educational attainment and the gender wage gap: evidence from the 1986 and 1991 Canadian censuses," Economics of Education Review, Elsevier, vol. 20(2), pages 165-180, April.
    11. repec:dau:papers:123456789/4924 is not listed on IDEAS
    12. David Madden, 2010. "Gender Differences in Mental Well-Being: a Decomposition Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 99(1), pages 101-114, October.
    13. Pastore, Francesco & Verashchagina, Alina, 2006. "Private returns to human capital over transition: A case study of Belarus," Economics of Education Review, Elsevier, vol. 25(1), pages 91-107, February.
    14. Adam Pilny, 2017. "Explaining Differentials in Subsidy Levels Among Hospital Ownership Types in Germany," Health Economics, John Wiley & Sons, Ltd., vol. 26(5), pages 566-581, May.
    15. Michael Coelli & Roger Wilkins, 2009. "Credential Changes and Education Earnings Premia in Australia," The Economic Record, The Economic Society of Australia, vol. 85(270), pages 239-259, September.
    16. Stephen Morris & Rosalind Goudie & Matt Sutton & Hugh Gravelle & Robert Elliott & Arne Risa Hole & Ada Ma & Bonnie Sibbald & Diane Skåtun, 2011. "Determinants of general practitioners' wages in England," Health Economics, John Wiley & Sons, Ltd., vol. 20(2), pages 147-160, February.
    17. Vassilis Monastiriotis & Angelo Martelli, 2021. "Crisis, Adjustment and Resilience in the Greek Labor Market: An Unemployment Decomposition Approach," International Regional Science Review, , vol. 44(1), pages 85-112, January.
    18. Eric A. Hanushek & Victor Lavy & Kohtaro Hitomi, 2008. "Do Students Care about School Quality? Determinants of Dropout Behavior in Developing Countries," Journal of Human Capital, University of Chicago Press, vol. 2(1), pages 69-105.
    19. Niels-Hugo Blunch, 2015. "Bound to lose, bound to win? The financial crisis and the informal-formal sector earnings gap in Serbia," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-34, December.
    20. Stillman, Steven & Velamuri, Malathi & Aitken, Andrew, 2010. "The long-run impact of New Zealand's structural reform on local communities," Journal of Comparative Economics, Elsevier, vol. 38(4), pages 432-448, December.
    21. Alison Preston, 1997. "Where Are We Now With Human Capital Theory in Australia?," The Economic Record, The Economic Society of Australia, vol. 73(220), pages 51-78, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:80:y:2004:i:248:p:101-124. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.