Source: The Treasury
This paper examines New Zealand’s income inequality trends from 2007 to 2023, showing a rise until 2013 followed by a decline to below 2007 levels. The study analysed different household types separately, helping explain why public perceptions of inequality sometimes differ from official statistics.
By decomposing the population into different household types, the authors identify key drivers: narrowing income gaps between household types, and less income inequality within multi-adult households with and without children. While single-person households show high inequality levels, their small population share means they have limited impact on overall trends.
Overall income inequality decreased for senior households, but the paper shows increasing disparities between different senior household types based on work status and living arrangements, alongside a growing trend of seniors working beyond superannuation age and experiencing diverse living arrangements.
Disclaimer: The views, opinions, findings, and conclusions or recommendations expressed in this paper are strictly those of the authors. They do not necessarily reflect the views of the New Zealand Treasury or the New Zealand Government. The New Zealand Treasury and the New Zealand Government take no responsibility for any errors or omissions in, or for the correctness of, the information contained in papers and articles.
