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Income Mobility in New Zealand: A Descriptive Analysis

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Abstract

The purpose of this paper is to examine the absolute and relative income mobility in disposable income in New Zealand using the full longitudinal data from the Survey of Family, Income and Employment (SoFIE) from 2002 to 2010. To summarise the patterns of mobility, we analyse the income changes over the short-term (annual) and a longer term interval (eight years). There is change in incomes between one year and the next, with over 60 percent of the population changing income decile group. The movements in income group are more of a short distance (to adjacent income groups) than long distance. There is substantial change in income over the long-run in both absolute and relative income. Only 22 percent stay in the same income decile group eight years later. The findings of mobility income are similar to those found in other international longitudinal surveys.

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  • Kristie Carter & Penny Mok & Trinh Le, 2014. "Income Mobility in New Zealand: A Descriptive Analysis," Treasury Working Paper Series 14/15, New Zealand Treasury.
    • Handle: RePEc:nzt:nztwps:14/15
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    Cited by:

    1. Alinaghi, Nazila & Creedy, John & Gemmell, Norman, 2020. "Constructing a Longitudinal Database for the Analysis of Individual Incomes in New Zealand," Working Paper Series 21097, Victoria University of Wellington, Chair in Public Finance.
    2. Balabanis, George & Stathopoulou, Anastasia, 2021. "The price of social status desire and public self-consciousness in luxury consumption," Journal of Business Research, Elsevier, vol. 123(C), pages 463-475.
    3. Creedy, John & Quy, Ta, 2022. "Income Mobility in New Zealand 2007–2020: Combining Household Survey and Census Data," Working Paper Series 25797, Victoria University of Wellington, Chair in Public Finance.
    4. Alinaghi, Nazila & Creedy, John & Gemmell, Norman, 2020. "A Longitudinal Database for the Analysis of Family Incomes in New Zealand," Working Paper Series 9370, Victoria University of Wellington, Chair in Public Finance.
    5. Alinaghi, Nazila & Creedy, John & Gemmell, Norman, 2020. "A Longitudinal Database for the Analysis of Family Incomes in New Zealand," Working Paper Series 21098, Victoria University of Wellington, Chair in Public Finance.
    6. Alinaghi, Nazila & Creedy, John & Gemmell, Norman, 2020. "Constructing a Longitudinal Database for the Analysis of Individual Incomes in New Zealand," Working Paper Series 9369, Victoria University of Wellington, Chair in Public Finance.
    7. Suzuki, Tomoya, 2021. "Basic income, wealth inequality and welfare: A proposed case in New Zealand," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 118-128.

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    More about this item

    Keywords

    Income; Mobility; Longitudinal data;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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