Ethnic Wage Differences in Aotearoa New Zealand

David Maré and Thomas Benison ()
Additional contact information
Thomas Benison: Motu Economic and Public Policy Research Trust

No 18275, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Ethnic wage gaps are a substantial and persistent issue in New Zealand. Understanding the drivers of such gaps is key to understanding the economic, social, and institutional factors that contribute to labour market inequality and to identifying measures to reduce gaps. Using household survey data from 2009 to 2023, this study implements a version of the Oaxaca-Blinder decomposition method to examine the sources of ethnic wage gaps in New Zealand. Our results confirm the pattern of disadvantage previously documented for non-European ethnic groups. Differences in demographic, educational, and job characteristics account for substantial portions of the wage gaps for M?ori, Pacific, and European groups. After accounting for differences in mean characteristics, sizeable wage gaps remain, providing insight into the degree of ethnic labour market disadvantage that is due to unobservable characteristics or broader systemic factors.

Keywords: decomposition; wages; ethnicity; Aotearoa New Zealand (search for similar items in EconPapers)
JEL-codes: J15 J30 J71 (search for similar items in EconPapers)
Date: 2025-11
New Economics Papers: this item is included in nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://docs.iza.org/dp18275.pdf (application/pdf)

Related works:
Working Paper: Ethnic wage differences in Aotearoa New Zealand (2025)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp18275

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().