The Income Gap in NZ

How does income gap affect peoplein New Zealand?

Outline

・ The gap between rich and poor

・ The Income Gap in OECD

・ The Income Gap Growth in OECD

・Main problem of the Income Gap

・ conclusion

The gap between rich and poor

New Zealand-Population :　 4.4milion (2010)

-GDP : 116.4billion US dollars (2008)

“Bottom 50% of population hold X percent of nation’s wealth.”

Question: What is the X?

Source: OECD FACTBOOK 2010

The gap between rich and poor

Percent of total net worth

Cumulative(%)

TOP 1% 16.4 TOP 1% 16.4

Next 4% 21.3 TOP 5% 37.4

Next 5% 14.1 TOP 10% 51.8

Next 40% 43.0 TOP 50% 94.8

Bottom 50%5.2％ ALL 100

Source :Statistics NZ, Wealth and Disparities in NZ report

The Income Gap In OECD

countries

DNKSW

ELU

XAUT

CZESVK

FINBEL

NLDCHE

NOR IS

LFRA

HUNDEU

AUS

OECD-3

0KO

RCAN

ESPJP

NG

RCIR

LNZL

GBR

ITA

POL

USAPRT

TURM

EX

0.20

0.25

0.30

0.35

0.40

0.45

0.50

1 = 1 person who is richest has all of income

0 = everybody has the same income

NZ = 0.335 pointAve= 0.311 point

0.2

0.3

0.4

0.5

Source: OECD FACTBOOK 2010

“Gini coefficients” of income inequality in OECD countries, mid-2000s

The Income Gap Growth In OECD

countriesSource: OECD FACTBOOK 2010

Cumulative change (Mid-1980s to Mid-2000s)

AUS

AUT

BEL

CAN

CZE

DNK

FIN

FRA

DEU

GRC

HUN

IRL

ITA

JPN

LUX

MEX

NLD

NZL

NOR

PRT

ESP

SWE

TUR

GBR

USA

OECD-24

OECD-22

- 0.08 - 0.04 0.00 0.04 0.08

Mid-1980s ~Mid2000sNZL +0.064 point

“Point changes” in the Gini coefficient

What is the main problem?

・ Poverty in children　

NZ is ranked 28th (out of 30 countries in the member of OECD)

Last year…about 100 children died because of poverty.

What is the main problem?

・A Vicious Circle Poor

Parent

Poor Child

Poor Parent

Conclusion

・ Share the Income to those at the bottom

・ Improve the gap of wages and salaries

Progressive taxation(rate) Promote a nation’s welfare for the bottom (especially in health, education for child)

Work harder Decrease part time job rate

END