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Statistical Analysis of Ethnic Wage Gaps in New Zealand

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Abstract

This paper estimates the contribution of differences in measured personal and job characteristics to New Zealand’s ethnic wage gaps. There are substantial and persistent gaps between the average hourly wages of Pākehā, Māori and Pacific employees. Survey estimates published by Statistics NZ show that the average hourly wage earned by Māori employees was 82% of the average hourly Pākehā wage in 2017, while the average wage earned by Pacific employees was 77% of the average Pākehā wage. The purpose of the paper is to investigate the extent to which ethnic group differences in demographic, productivity-related or job characteristics may be contributing to the ethnic pay gaps. Treasury has produced this paper as one of its contributions to He kai kei aku ringa, the previous Government’s Māori economic development strategy.

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  • New Zealand Treasury, 2018. "Statistical Analysis of Ethnic Wage Gaps in New Zealand," Treasury Analytical Papers Series ap18/03, New Zealand Treasury.
    • Handle: RePEc:nzt:nztaps:ap18/03
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    File URL: https://www.treasury.govt.nz/sites/default/files/2018-08/ap18-03.pdf
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    References listed on IDEAS

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    1. David Neumark, 2018. "Experimental Research on Labor Market Discrimination," Journal of Economic Literature, American Economic Association, vol. 56(3), pages 799-866, September.
    2. 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.
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    Cited by:

    1. Maré, David C. & Benison, Thomas, 2025. "Ethnic Wage Differences in Aotearoa New Zealand," IZA Discussion Papers 18275, IZA Network @ LISER.
    2. David C. Maré & Lyn Brieseman, 2025. "Some notes on measuring pay gaps," Motu Notes Note_55, Motu Economic and Public Policy Research.

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