Disparities and Despair: Changes in Regional Income Distributions in New Zealand 1981-96

Australasian Journal of Regional Studies, Vol. 6, No. 3, pp. 323-47, 2000

Posted: 11 Jan 2010

See all articles by Özer Karagedikli

Özer Karagedikli

Reserve Bank of New Zealand

David C. Maré

Motu Economic and Public Policy Research Trust; University of Waikato - Economics

Jacques Poot

Vrije Universiteit Amsterdam, Department of Spatial Economics; University of Waikato - National Institute of Demographic and Economic Analysis; Motu Economic and Public Policy Research; IZA Institute of Labor Economics

Date Written: 2000

Abstract

Among developed economies, New Zealand is one of the countries that experienced a large increase in personal income inequality since the mid 1980s. This paper focuses on income inequality at the regional level. Smith (2000) and Karagedikli et al. (2000) found that the variation in mean income across regions also grew sharply, but that there was convergence among regions in measures of intra-regional income inequality. This paper further investigates changes in inter and intra-regional income dispersion. Excluding the metropolitan regions Auckland and Wellington, real mean incomes converged across the regions (and declined for males). Regional Gini coefficients were higher in 1996 than in 1981 for males, but lower for females. However, women experienced a higher increase in inequality during the second half of the economic reform decade (1986-1996), while men experienced a higher increase during the first half. Regional labour market characteristics play an important role in explaining the regional income distributions. We also focus on the interaction between income inequality and economic growth at the regional level.

Keywords: regional income inequality, regional convergence

JEL Classification: R12

Suggested Citation

Karagedikli, Ozer and Maré, David C. and Poot, Jacques, Disparities and Despair: Changes in Regional Income Distributions in New Zealand 1981-96 (2000). Australasian Journal of Regional Studies, Vol. 6, No. 3, pp. 323-47, 2000. Available at SSRN: https://ssrn.com/abstract=1534328

Ozer Karagedikli

Reserve Bank of New Zealand ( email )

2 The Terrace
P.O. Box 2498
Wellington, 6011
New Zealand
64 4-471-3792 (Phone)
64 4-473-1209 (Fax)

David C. Maré

Motu Economic and Public Policy Research Trust ( email )

PO Box 24390
Wellington, 6021
New Zealand
64-4-9394250 (Phone)

HOME PAGE: http://www.motu.org.nz

University of Waikato - Economics

New Zealand

Jacques Poot (Contact Author)

Vrije Universiteit Amsterdam, Department of Spatial Economics ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands

University of Waikato - National Institute of Demographic and Economic Analysis ( email )

Te Raupapa
Private Bag 3105
Hamilton, 3240
New Zealand

Motu Economic and Public Policy Research

Level 1, 93 Cuba Street
P.O. Box 24390
Wellington, 6142
New Zealand

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Register to save articles to
your library

Register

Paper statistics

Abstract Views
412
PlumX Metrics