Pay Gaps – an $18 billion a year issue (revised - 2025)

David Maré ()
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David Maré: Motu Economic and Public Policy Research

No Note_45v2, Motu Notes from Motu Economic and Public Policy Research

Abstract: This note estimates the aggregate size of gender and ethnic pay gaps in New Zealand. The gender pay gap represents $7.8 billion per year, or 4% of wages and salaries. Gender and ethnic pay gaps combined represent $20.0 billion per year, or 11% of wages and salaries. The note also discusses recent research that identifies the contributions of gender and ethnic differences in personal and job characteristics, and points to the important role of within-firm pay gaps. This is an updated version of Motu Note #45. The numbers (and descriptions of the data) have been updated to reflect more recent data. The text is largely unchanged. The Title has not been updated but a revised title would read: “Pay Gaps – a $20 billion a year issue”.

Pages: 10 pages
Date: 2025-12
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