Movements into and Out of Child Poverty in New Zealand: Results from the Linked Income Supplement

Abstract

This paper considers the dynamics of child income poverty in New Zealand. Annual movements into and out of poverty by children's households in New Zealand over the 1997/98, 1998/99, and 1999/2000 periods are analysed. The annual Income Supplement to the Household Labour Force Survey allows tracking of dwellings and people in two consecutive June quarterly weeks, and thus allows observation of changes in equivalised household disposable income over a June year. This project is the first to use the Linked Income Survey for analysis of income dynamics and is part of the Ministry of Social Policy's ongoing research on family dynamics. New Zealand adult and child poverty transitions are compared. Child poverty transitions in New Zealand are compared and contrasted to those of five other countries - Britain, Germany, Hungary, Russia and Spain - where a similar current income measure of poverty is available. The frequency of poverty trigger events in New Zealand and their impact on the chances of children exiting and entering poverty are compared to similar data for Britain and West Germany.

Keywords: Child poverty, household income, income mobility

JEL Classification: I32, J13