Income Growth and Earnings Variations in New Zealand, 1998—2004
This work provides an update of changes in the income distribution over the period from 1998-2004, using data from the Household Labour Force Survey's annual Income Supplement (HLFS-IS). We focus on changes in working-age individuals' earnings and total income distribution and, to allow for resource sharing within households, their equivalised household total income distribution over the period. Our analysis shows that there have been broad gains in income to both individuals and households, suggesting the spoils of growth have been shared widely across the income distribution. Mean and median earnings increased 15 percent and 23 percent respectively, while mean and median individual income both increased 12-13 percent and equivalised household income by 11 percent. Inequality, as measured by the Gini coefficient, was more stable: individual earnings inequality fell 4 percent; individual income inequality was unchanged, while equivalised household income inequality increased 2-3 percent. The main contributors to the observed changes appear to be employment and real wage growth. We estimate that roughly one-half of the growth in average individual incomes is due to employment growth, and one-quarter each to demographic changes and wage growth. We also find that the relative employment and wage contributions have varied across the distribution: income gains at the lower end of the income distributions have been largely driven by employment, while changes at the higher end have been driven by wage gains.
|Date of creation:||Nov 2005|
|Contact details of provider:|| Postal: New Zealand Treasury, PO Box 3724, Wellington, New Zealand|
Phone: +64-4-472 2733
Fax: +64-4-473 0982
Web page: http://www.treasury.govt.nz
More information through EDIRC
References listed on IDEAS
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.:
- René Böheim & Stephen P. Jenkins, 2000.
"Do Current Income and Annual Income Measures Provide Different Pictures of Britain's Income Distribution?,"
Discussion Papers of DIW Berlin
214, DIW Berlin, German Institute for Economic Research.
- BÃ¶heim, RenÃ© & Jenkins, Stephen P., 2000. "Do current income and annual income measures provide different pictures of Britain's income distribution?," ISER Working Paper Series 2000-16, Institute for Social and Economic Research.
- Jenkins, Stephen P & Cowell, Frank A, 1994. "Parametric Equivalence Scales and Scale Relativities," Economic Journal, Royal Economic Society, vol. 104(425), pages 891-900, July.
- Jenkins, Stephen P. & Van Kerm, Philippe, 2004.
"Accounting for Income Distribution Trends: A Density Function Decomposition Approach,"
IZA Discussion Papers
1141, Institute for the Study of Labor (IZA).
- Stephen Jenkins & Philippe Kerm, 2005. "Accounting for income distribution trends: A density function decomposition approach," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 3(1), pages 43-61, April.
- Jenkins, Stephen P. & Van Kerm, Philippe, 2004. "Accounting for income distribution trends: a density function decomposition approach," ISER Working Paper Series 2004-05, Institute for Social and Economic Research.
- Jenkins, Stephen P. & Van Kerm, Philippe, 2004. "Accounting for income distribution trends: A density function decomposition approach," IRISS Working Paper Series 2004-07, IRISS at CEPS/INSTEAD.
- 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 410-442, June.
- 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.
- Lars Osberg, 1998. "Economic Insecurity," Discussion Papers 0088, University of New South Wales, Social Policy Research Centre.
When requesting a correction, please mention this item's handle: RePEc:nzt:nztwps:05/11. 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: (Web and Publishing Team, The Treasury)
If references are entirely missing, you can add them using this form.