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Pay Gaps – an $18 billion a year issue (revised - 2025)

Author

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  • David Maré

    (Motu Economic and Public Policy Research)

Abstract

This note estimates the aggregate size of gender and ethnic pay gaps in New Zealand. The gender pay gap represents $7.8 billion per year, or 4% of wages and salaries. Gender and ethnic pay gaps combined represent $20.0 billion per year, or 11% of wages and salaries. The note also discusses recent research that identifies the contributions of gender and ethnic differences in personal and job characteristics, and points to the important role of within-firm pay gaps. This is an updated version of Motu Note #45. The numbers (and descriptions of the data) have been updated to reflect more recent data. The text is largely unchanged. The Title has not been updated but a revised title would read: “Pay Gaps – a $20 billion a year issue”.

Suggested Citation

  • David Maré, 2025. "Pay Gaps – an $18 billion a year issue (revised - 2025)," Motu Notes Note_45v2, Motu Economic and Public Policy Research.
    • Handle: RePEc:mtu:mnotes:note_45v2
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    References listed on IDEAS

    as
    1. Allan, Corey & Maré, David C., 2022. "Who Benefits from Firm Success? Heterogenous Rent Sharing in New Zealand," IZA Discussion Papers 15264, IZA Network @ LISER.
    2. Isabelle Sin & Steven Stillman & Richard Fabling, 2022. "What Drives the Gender Wage Gap? Examining the Roles of Sorting, Productivity Differences, Bargaining, and Discrimination," The Review of Economics and Statistics, MIT Press, vol. 104(4), pages 636-651, October.
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