Short Summary This research note aims to explore the factors that contribute / explain the Māori and ethnic pay gaps in New Zealand. In particular, pay gaps for Māori, Pacific, and Asians relative to Europeans. We use Stats NZ data from the Household Labour Force Survey for 2019 and 2020. A descriptive profile of the four ethnic groups, by gender, is provided to illustrate the heterogeneities across populations in terms of a number of variables grouped into the following categories: individual characteristics, educational attainment, region, household and job-related characteristics. The main empirical analysis involves estimation of the statistical contribution of observed factors (within each of the aforementioned categories) towards explaining the ethnic pay gaps. As this research is primarily aimed as an input towards the Pacific Pay Gap Inquiry being conducted by the Human Rights Commission, we focus our summary of the key findings on the Pacific – European pay gap. The Pacific Pay Gap (with Europeans) was 24 and 15 percent in 2020 for males and females respectively. We find that differences in job-related characteristics are the key contributor to the pay gap regardless of gender. This includes variables on permanent contract status, an indicator if in part-time work, occupation, and industry. These results are therefore likely an indication of the strong role of occupational segregation in the labour market. An additional factor that had a relatively strong contribution to the pay gap, particularly for the Pacific – European female gap, was educational attainment. Overall, even after accounting for differences in job-related characteristics and educational attainment, amongst a number of other observed factors, it was still found that only 27 percent of the pay gap for Pacific males (relative to Europeans) could be explained; and the corresponding proportion for females was 39 percent. The remaining portion of the Pacific Pay Gap is likely to reflect a range of causes that cannot be quantified or disentangled in this analysis – such as not including other factors of importance as they weren’t observed in the data (for example, literacy proficiency or field of study for qualification attained); ethnic differences in preferences for non-wage components of the job; unconscious bias; and discrimination. Empirical analysis of Pacific, Māori and ethnic pay gaps in New Zealand 1