The Relationship between Individual Labour Market Outcomes, Household Income and Expenditure, and Inequality and Poverty in New Zealand from 1983 to 2003

Motu Economic and Public Policy Research Working Paper No. 12-02

78 Pages Posted: 9 Feb 2012

See all articles by Steven Stillman

Steven Stillman

Free University of Bozen-Bolzano; IZA Institute of Labor Economics

Trinh Le

Motu Economic and Public Policy Research Trust

John Gibson

University of Waikato; Motu Economic and Public Policy Research

Dean Hyslop

Motu Economic and Public Policy Research

David C. Maré

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

Date Written: February 9, 2012

Abstract

This paper investigates the relationship between individual labour market outcomes, household income and expenditure, and inequality and poverty in New Zealand using detailed data from the 1983/84-2003/04 Household Economic Survey (HES). We begin by discussing and summarising measures of income and expenditure calculated from the HES. We next examine the relationship between individual labour market outcomes, and household income and expenditure for households with different characteristics. In particular, we focus on how this relationship varies over the life cycle and over time. This analysis is then extended to examine inequality in labour market outcomes, household income and household expenditure. In the last section, we examine the determinants of the levels and changes in poverty in New Zealand using both expenditure and income data. We also apply a newly developed methodology for combining income and expenditure data to produce poverty indicators.

Keywords: income, expenditure, inequality, poverty, living standards, New Zealand

JEL Classification: J31, I31, I32

Suggested Citation

Stillman, Steven and Le, Trinh and Gibson, John and Hyslop, Dean R. and Maré, David C., The Relationship between Individual Labour Market Outcomes, Household Income and Expenditure, and Inequality and Poverty in New Zealand from 1983 to 2003 (February 9, 2012). Motu Economic and Public Policy Research Working Paper No. 12-02, Available at SSRN: https://ssrn.com/abstract=2002357 or http://dx.doi.org/10.2139/ssrn.2002357

Steven Stillman (Contact Author)

Free University of Bozen-Bolzano ( email )

Via Sernesi 1
39100 Bozen-Bolzano (BZ), Bozen 39100
Italy

IZA Institute of Labor Economics

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

Trinh Le

Motu Economic and Public Policy Research Trust ( email )

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

John Gibson

University of Waikato ( email )

Te Raupapa
Private Bag 3105
Hamilton, 3240
New Zealand

Motu Economic and Public Policy Research

19 Milne Terrace
Island Bay
Wellington, 6002
New Zealand

Dean R. Hyslop

Motu Economic and Public Policy Research ( email )

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

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

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