Income Inequality and Gender in New Zealand, 1998-2003
A number of authors have documented an increase in earnings or income inequality in New Zealand during the late 1980s and early 1990s, a period of major economic reform, however no study has evaluated changes in inequality during the post-reform era. This paper applies a recently-developed method for decomposing changes in inequality to New Zealand income and earnings data and extends it to analyse changes in inequality between men and women. Across the total working-age population, income inequality rose among both males and females between 1998 and 2003. In both cases, the majority of this was unexplained by changes in the observed determinants of income, however shifts in the distribution of education and the associated returns were responsible for part of the increase. Among the subset of workers, earnings inequality increased significantly for both genders. Although changes in the returns to measured characteristics contributed to the rise in inequality, this was partially offset by changes in the distribution of these characteristics. Between-gender inequality fell with respect to both samples. In contrast to within-gender inequality, this was largely explained by changes in the returns to the observed characteristics. Overall, there is evidence that the male and female income distributions are converging, although both are becoming more dispersed.
|Date of creation:||Oct 2004|
|Date of revision:|
|Publication status:||published in: New Zealand Economic Papers, 2010, 44 (3), 217-229|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ronald Oaxaca, 1971.
"Male-Female Wage Differentials in Urban Labor Markets,"
396, Princeton University, Department of Economics, Industrial Relations Section..
- Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
- Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
- Ira N. Gang & Myeong-Su Yun, 2002.
"Decomposing Inequality Change in East Germany During Transition,"
Departmental Working Papers
200220, Rutgers University, Department of Economics.
- Gang, Ira N. & Yun, Myeong-Su, 2002. "Decomposing Inequality Change in East Germany During Transition," IZA Discussion Papers 579, Institute for the Study of Labor (IZA).
- Podder, Nripesh & Chatterjee, Srikanta, 2002. "Sharing the national cake in post reform New Zealand: income inequality trends in terms of income sources," Journal of Public Economics, Elsevier, vol. 86(1), pages 1-27, October.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp1365. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.