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More Pensioners, Less Income Inequality? The Impact of Changing Age Composition on Inequality in Big Cities and Elsewhere

In: Modelling Aging and Migration Effects on Spatial Labor Markets

Author

Listed:
  • Omoniyi B. Alimi

    (University of Waikato)

  • David C. Maré

    (Motu Economic and Public Policy Research)

  • Jacques Poot

    (University of Waikato)

Abstract

As is the case in most developed countries, the population of New Zealand is ageing numerically and structurally. Population ageing can have important effects on the distribution of personal income within and between urban areas. The age structure of the population may affect the distribution of income through the life-cycle profile of earnings but also through the spatial-temporal distribution of income within the various age groups. By decomposing New Zealand census data from 1986 to 2013 by age and urban area, this chapter examines the effects of population ageing on spatial-temporal changes in the distribution of personal income to better understand urban area-level income inequality (measured by the Mean Log Deviation index). We focus explicitly on differences between metropolitan and non-metropolitan urban areas. New Zealand has experienced a significant increase in income inequality over the last few decades, but population ageing has slightly dampened this trend. Because metropolitan areas are ageing slower, the inequality-reducing effect of ageing has been less in these areas. However, this urban-size differential-ageing effect on inequality growth has been relatively small compared with the faster growth in intra-age group inequality in the metropolitan areas.

Suggested Citation

  • Omoniyi B. Alimi & David C. Maré & Jacques Poot, 2018. "More Pensioners, Less Income Inequality? The Impact of Changing Age Composition on Inequality in Big Cities and Elsewhere," Advances in Spatial Science, in: Roger R. Stough & Karima Kourtit & Peter Nijkamp & Uwe Blien (ed.), Modelling Aging and Migration Effects on Spatial Labor Markets, chapter 0, pages 133-159, Springer.
    • Handle: RePEc:spr:adspcp:978-3-319-68563-2_8
    DOI: 10.1007/978-3-319-68563-2_8
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    Cited by:

    1. O'Keefe, Philip & Rongen, Gerton, 2025. "Should Malaysia Expand its Social Pension? : Global Evidence, Design Issues and Options," The Social Policy and Labor Discussion Paper Series 204885, The World Bank.
    2. Chu, Yihe & Li, Yujia & Che, Ming, 2024. "Population aging and the dynamics of the skill income gap: An analysis of a multiple mediation effect," Finance Research Letters, Elsevier, vol. 62(PB).
    3. Mohana Mondal & Michael P. Cameron & Jacques Poot, 2021. "Cultural and economic residential sorting of Auckland’s population, 1991–2013: an entropy approach," Journal of Geographical Systems, Springer, vol. 23(2), pages 291-330, April.
    4. Omoniyi B Alimi & David C Maré & Jacques Poot, 2020. "The effects of immigration and skills on urban income inequality in New Zealand: two decomposition approaches," RFBerlin Discussion Paper Series 2023, ROCKWOOL Foundation Berlin (RFBerlin).
    5. Luis Ayala & Javier Martín‐Román & Juan Vicente, 2024. "What contributes to rising inequality in large cities?," Journal of Regional Science, Wiley Blackwell, vol. 64(5), pages 1760-1810, November.
    6. Alimi, Omoniyi B. & Mare, David C. & Poot, Jacques, 2018. "Who partners up? Educational assortative matching and the distribution of income in New Zealand," Motu Working Papers 290498, Motu Economic and Public Policy Research.
    7. 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.

    More about this item

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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