Research Note: Empirical Analysis of Ethnic Pay Gaps in New Zealand

Abstract

This research note explores the factors contributing to ethnic pay gaps in New Zealand. The emphasis here is on description, as a causal analysis is beyond the capability of the methods used. The gaps between the average (as well as median) hourly wages for the European workforce relative to Māori and Pacific workers are substantial. A statistical analysis by Treasury in 2018 also showed that the ratio in average hourly wages (based on published survey estimates by Stats NZ) for both ethnic groups relative to European had stayed at a similar level for the last decade; as they state “there has been movement from year to year but no consistent upward or downward trend” (Treasury, 2018, p.1).