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“No Country for Old Men”: a Note on the trans-Tasman Income Divide


  • Andrew Coleman

    () (Motu Economic and Public Policy Research)

  • Hugh McDonald

    () (Motu Economic and Public Policy Research)


Although much work has been done analysing the possible causes of the New Zealand-Australian income gap, to date there has been little analysis of the extent to which this gap differs by gender and age. Using New Zealand and Australian employment and census data we examine these differences and find that (1) over the last 25 years the incomes of New Zealand women have declined less rapidly than those of New Zealand men, relative to Australian incomes; (2) this poor relative performance of New Zealand males was felt most by those in middle age; and (3) the stronger relative income growth of New Zealand females appears to be largely driven by increased public sector wage growth, and as such, its long term sustainability is questionable.

Suggested Citation

  • Andrew Coleman & Hugh McDonald, 2010. "“No Country for Old Men”: a Note on the trans-Tasman Income Divide," Working Papers 10_08, Motu Economic and Public Policy Research.
  • Handle: RePEc:mtu:wpaper:10_08

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    1. Dimitri Margaritis & Frank Scrimgeour & Michael Cameron & John Tressler, 2005. "Productivity and Economic Growth in Australia, New Zealand and Ireland," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 12(4), pages 291-308.
    2. Le, Trinh, 2008. "When will New Zealand catch up with Australia?," NZIER Working Paper 2008/3, New Zealand Institute of Economic Research.
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    dynamic optimisation; electricity spot market performance; stochastic fuel availability; storage options; climate change;

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities

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