Table 2 begins with the wage profile comparison
across ethnic and gender groups. In particular,
average hourly earnings are provided from
the main job (excluding overtime earnings). As
expected, European wages are higher than other
ethnic groups, irrespective of gender. The average
European male pre-tax hourly earnings in June
2020 in our sample is $35.72. The corresponding
figure for Māori males is 81 percent of that
figure; and for Pacific males, is 76 percent. To
understand if the regression sample constructed
using the HLFS is representative of the wage
profile of the full survey, we compare these ratios
to those available from public estimates from the
HLFS (Stats NZ, 2021). It is important to note the
differences between the regression sample and
full survey before the comparison. As detailed
earlier, we trim the bottom and top 1 percent of
the wage distribution to exclude the influence of
outliers; we also remove the self-employed; our
ethnic groups are based on prioritised ethnicity;
and we focus on 16-64 year olds. In comparison,
the available estimates for the full survey use
the population aged 15+; don’t prioritise ethnic
groups and don’t make any other exclusions.
Interestingly, we find almost identical wage
ratios between ethnic groups in our comparison.
For example, the average hourly wage ratio
for Māori, Pacific, and Asian females relative to
European females is 88 percent, 85 percent and
91 percent respectively in our regression sample;
and 89 percent, 85 percent and 92 percent in
the published estimates for the full survey.
This illustrates the representativeness of our
regression sample with respect to the full survey.
The educational attainment section of Table
2 illustrates that on average males are more
likely to have a post-school qualification relative
to females; and the reverse is true in terms
of bachelor’s qualifications. The proportion
of Māori males without a school qualification
is approximately double the corresponding
proportion for European males; with the
likelihood that Pacific males do not have a school
qualification being just over 2.7 times that for
European males.
In terms of household characteristics, females are
much more likely than males to be a sole parent.
Further, while the proportion of European females
that fall into this category is just under 5 percent;
the corresponding figure for Pacific females is
nearly 7 percent; and over 10 percent for Māori
females. Additionally, Pacific households tend to
be larger on average, relative to the other ethnic
groups.
Next on Table 2 are descriptives to illustrate
the regional distribution for these ethnic subgroups. It is clear that Pacific peoples are heavily
concentrated in the Auckland region; and a similar
pattern is evident for Asian peoples. Nearly
three quarters of Pacific in our sample reside in
Auckland. The comparable number for Europeans
is just over a quarter; and approximately one-fifth
for Māori.
The remainder of Table 2 is dedicated to jobrelated characteristics. Apart from the ‘Other’
category for occupation, the hierarchy of
classification ranges from labourer through to
Manager.
Pacific peoples are in general, less likely to be a
manager, and more likely to be in a labour type
occupation. Pacific men are also the most likely
to work in the Manufacturing industry, while for
Pacific women, it is the Healthcare and Social
Assistance industry. In terms of hours of work,
approximately 7 percent of European males work
part-time. The comparable figure for Māori and
Asian males is approximately 8 and 11 percent
respectively. In contrast, just under 5 percent of
Pacific males work part-time. The same pattern
is also evident for females, with Pacific women
being the least likely to work part-time. The last
variable of interest in Table 2 relates to security of
employment and is a binary indicator for whether
the individual has a permanent employment
contract. There is not a lot of variation evident
here – for most population groups, the probability
if employed to have a permanent contract is over
90 percent. The groups with the lowest probability
(but not by much) are Māori and Pacific females.
Empirical analysis of Pacific, Māori and ethnic pay gaps in New Zealand
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