Cumulative effects of the Pacific Pay Gap Over the course of a lifetime, unchanged pay gaps can amount to large cumulative differences (see Figure 3). On average, Pacific men earn $19,500 less annually compared to European men. Over the course of a lifetime, Pacific men earn $385,959 less than European men. For Māori and Asian men, this is $174,511 and $263,481 respectively. On average, Pacific women earn $24,671 less annually compared to European men. Over the course of a lifetime, this amounts to $488,310 less than European men. For Māori and Asian women, this is $400,368 and $422,096 respectively. Figure 3 Estimated cumulative impact of average 2021 pay gap for men and women over the course of 40 years compared to European men $21,326 Asian women $422,096 $24,671 Pacific women $488,310 $20,228 Māori women $400,368 $12,601 European women $249,415 $13,312 Asian men $263,481 $19,500 Pacific men $8,817 Māori men $0 $385,959 $174,511 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 Individual earnings gap in 2021 Individual 40-year earnings gap Source: Household Labour Force Survey data from Stats NZ. Note: Calculations are based on median earnings for full-time workers in 2021 broken down by ethnicity, gender and age. Earnings are in 2021 dollars and inflation rate is assumed to be 4 percent. Data for MELAA was insufficient for analysis. Net present value of the pay gap was calculated using the average pay gap in annual median income (by ethnicity, gender and age) using a 40-year period and inflation rate of 4%. Voices of Pacific peoples 35