IDEAS home Printed from https://ideas.repec.org/p/nzt/nztwps/04-20.html
   My bibliography  Save this paper

Household incomes in New Zealand: The impact of the market, taxes and government spending, 1987/88–1997/98

Author

Listed:

Abstract

How well have New Zealand households fared over a decade of extensive economic and social changes? This study compares household incomes in 1997/98 with household incomes in 1987/88, using the concept of "final income". Final income is a measure of the income accruing to households after adjusting for payments to, and benefits from, central government, whether these benefits are in cash or in kind. In particular, receipt of government health and education services is counted as adding to a household’s income, and payment of consumption taxes is counted as taking away from a household’s income. In all income deciles, the real final incomes of households were, on average, at least the same in 1997/98 as they were in 1987/88, and in most cases had increased. Government intervention, through taxes, cash benefits and social services, has maintained the incomes of less well-off households over a period of upheaval in New Zealand.

Suggested Citation

  • Ron Crawford & Grant Johnston, 2004. "Household incomes in New Zealand: The impact of the market, taxes and government spending, 1987/88–1997/98," Treasury Working Paper Series 04/20, New Zealand Treasury.
  • Handle: RePEc:nzt:nztwps:04/20
    as

    Download full text from publisher

    File URL: https://treasury.govt.nz/sites/default/files/2007-09/twp04-20.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Patricia Ruggles & Michael O'Higgins, 1981. "The Distribution Of Public Expenditure Among Households In The United States," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 27(2), pages 137-164, June.
    2. O'Higgins, Michael & Schmaus, Guenther & Stephenson, Geoffrey, 1989. "Income Distribution and Redistribution: A Microdata Analysis for Seven Countries," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 35(2), pages 107-131, June.
    3. 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.
    4. Sheldon Danziger & Michael K. Taussing, 1979. "The Income Unit And The Anatomy Of Income Distribution," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(4), pages 365-375, December.
    5. Des O'Dea, 2000. "The Changes in New Zealand's Income Distribution," Treasury Working Paper Series 00/13, New Zealand Treasury.
    6. Daniel B. Radner, 1997. "Noncash Income, Equivalence Scales, And The Measurement Of Economic Well‐Being," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(1), pages 71-88, March.
    7. Ruggles, Patricia & O'Higgins, Michael, 1981. "The Distribution of Public Expenditure among Households in the United States," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 27(2), pages 137-164, June.
    8. Michael O'Higgins & Patricia Ruggles, 1981. "The Distribution Of Public Expenditures And Taxes Among Households In The United Kingdom," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 27(3), pages 298-326, September.
    9. Richard A. Musgrave & Karl E. Case & Herman Leonard, 1974. "The Distribution of Fiscal Burdens and Benefits," Public Finance Review, , vol. 2(3), pages 259-311, July.
    10. Danziger, Sheldon & Taussig, Michael K, 1979. "The Income Unit and the Anatomy of Income Distribution," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(4), pages 365-375, December.
    11. Mchel O'Higgins & Guenther Schmaus & Geofrey Stephenson, 1989. "Income Distribution And Redistribution: A Microdata Analysis For Seven Countries," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 35(2), pages 107-131, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kerry Papps, 2010. "Earnings inequality and gender in New Zealand, 1998-2008," New Zealand Economic Papers, Taylor & Francis Journals, vol. 44(3), pages 217-229.
    2. Omar A. Aziz & Christopher Ball & John Creedy & Jesse Eedrah, 2015. "The distributional impact of population ageing in New Zealand," New Zealand Economic Papers, Taylor & Francis Journals, vol. 49(3), pages 207-226, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dean R. Hyslop & David C. Maré, 2003. "Understanding New Zealand's Changing Income Distribution 1983-98: A Semiparametric Analysis," Working Papers 03_16, Motu Economic and Public Policy Research.
    2. Ali Enami & Nora Lustig & Rodrigo Aranda, 2016. "Analytic Foundations: Measuring the Redistributive Impact of Taxes and Transfers," Commitment to Equity (CEQ) Working Paper Series 1325, Tulane University, Department of Economics.
    3. Ali Enami & Nora Lustig & Rodrigo Aranda, 2016. "Analytic Foundations: Measuring the Redistributive Impact of Taxes and Transfers," Commitment to Equity (CEQ) Working Paper Series 25, Tulane University, Department of Economics.
    4. Günther Rehme, 2007. "Education, Economic Growth and Measured Income Inequality," Economica, London School of Economics and Political Science, vol. 74(295), pages 493-514, August.
    5. Frank Denton & Dean Mountain, 2004. "Aggregation effects on price and expenditure elasticities in a quadratic almost ideal demand system," Canadian Journal of Economics, Canadian Economics Association, vol. 37(3), pages 613-628, August.
    6. Justin van de Ven & Nicolas Hérault, 2019. "The evolution of tax implicit value judgements, redistribution and income inequality in the UK: 1968 to 2015," Working Papers 498, ECINEQ, Society for the Study of Economic Inequality.
    7. McKinley L. Blackburn & David E. Bloom, 1993. "The Distribution of Family Income: Measuring and Explaining Changes in the 1980s for Canada and the United States," NBER Chapters, in: Small Differences That Matter: Labor Markets and Income Maintenance in Canada and the United States, pages 233-266, National Bureau of Economic Research, Inc.
    8. Lustig Nora, 2016. "Inequality and Fiscal Redistribution in Middle Income Countries: Brazil, Chile, Colombia, Indonesia, Mexico, Peru and South Africa," Journal of Globalization and Development, De Gruyter, vol. 7(1), pages 17-60, June.
    9. Frank T. Denton & Dean C. Mountain, 2004. "Aggregation effects on price and expenditure elasticities in a quadratic almost ideal demand system," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(3), pages 613-628, August.
    10. Alari Paulus & Holly Sutherland & Panos Tsakloglou, 2010. "The distributional impact of in-kind public benefits in European countries," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(2), pages 243-266.
    11. Edward N. Wolff & Ajit Zacharias & Hyunsub Kum, 2006. "Net Government Expenditures and the Economic Well-Being of the Elderly in the United States, 1989-2001," Economics Working Paper Archive wp_466, Levy Economics Institute.
    12. John Creedy & Rosanna Scutella, 2004. "The Role of the Unit of Analysis in Tax Policy Return Evaluations of Inequality and Social Welfare," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 7(1), pages 89-108, March.
    13. Garry F. Barrett & Thomas F. Crossley & Christopher Worswick, 2000. "Consumption and Income Inequality in Australia," The Economic Record, The Economic Society of Australia, vol. 76(233), pages 116-138, June.
    14. Edward N. Wolff & Ajit Zacharias & Asena Caner, 2005. "Household wealth, public consumption and economic well-being in the United States," Cambridge Journal of Economics, Oxford University Press, vol. 29(6), pages 1073-1090, November.
    15. Milanovic Branko, 1994. "Cash Social Transfers, Direct Taxes, and Income Distribution in Late Socialism," Journal of Comparative Economics, Elsevier, vol. 18(2), pages 175-197, April.
    16. Melissa Holly Mahoney, 2013. "Inequity in American Schools: A New Perspective on the Distributional Effects of School Expenditures on Economic Well-Being," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(4), pages 728-755, December.
    17. Cormac O'Dea & Ian Preston, 2012. "The distributional impact of public spending in the UK," IFS Working Papers W12/06, Institute for Fiscal Studies.
    18. -, 1982. "Gasto público social y pobreza en América Latina," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 34198, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    19. Micheal Kofi Boachie & K. Ramu, 2018. "Distribution of the benefits from public health expenditures in Ghana," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(1), pages 415-430, January.
    20. Barbora Slintáková, 2014. "Cost of Service Approach to the Measurement of Public Expenditure Incidence [Nákladový přístup k měření dopadu veřejných výdajů]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2014(2), pages 92-105.

    More about this item

    Keywords

    final income; income distribution; redistribution; fiscal incidence; income inequality; New Zealand;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • I0 - Health, Education, and Welfare - - General
    • J1 - Labor and Demographic Economics - - Demographic Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nzt:nztwps:04/20. 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: . General contact details of provider: https://edirc.repec.org/data/tregvnz.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CSS Web and Publishing, The Treasury (email available below). General contact details of provider: https://edirc.repec.org/data/tregvnz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.