Appendix
Key facts and figures
Prevalence: Among working households, the proportion of households in poverty is 7.0 percent as at
March 2013.
Change over time: There has been very little change in in-work poverty rates between 2007 and 2017.
Sensitivity: Definitions and thresholds matter. For example, if the poverty threshold is dropped from
60 percent to 50 percent of median household income, the prevalence of in-work poverty drops to
4.7 percent. If we use the income distribution of a more restricted reference sample (working-age
households excluding pensioner and self-employed households) the prevalence of in-work poverty
rises to 12.4 percent.
Role of Government benefits: Inclusion of Working for Families (WfF) tax credits and the
Accommodation Supplement (AS) make a sizable impact on the prevalence of in-work poverty. Without
both income sources, the in-work poverty rate rises from 7.0 percent to 9.2 percent. The impact is
largest for single-parent households, where the in-work poverty rate rises from 12.3 to 21.6 percent
when WfF and AS are not included in the analyses.
Gender: 7.7 percent of adult females are associated with an in-work poor household, while for men
this number is 6.6 percent. The in-work poverty rate is also substantially higher if the main earner
in the household is female (compared to male) regardless of household structure. The difference
becomes most apparent for couples with child(ren), where this household type experiences an in-work
poverty rate of 12.3 percent if a female is the main earner, compared to 3 percent if a male is the main
earner. However, it is also worth noting that only one fourth (24.2 percent) of couple households with
child(ren) has a female main earner.
Children: 10 percent of children living in working households live in poverty, compared with 7.2
percent of adults in working households.
Disability: Households with at least one disabled adult have a higher rate of in-work poverty of 9.5
percent compared with households without a disabled adult at 6.6 percent.
Health: Health difficulties are also associated with higher rates of in-work poverty, particularly
difficulties with learning (10.1 percent) and communicating/socialising (10.1 percent) compared to
physical health difficulties (ranging from 7.9 to 8.5 percent).
Ethnicity: Households with at least one adult with prioritised ethnicity of Pacific, Middle Eastern /
Latin American / African, Asian, or Māori experience the highest in-work poverty rate compared with
households of other ethnicities.
Migrants: Households with at least one adult born in Aotearoa New Zealand face the average inwork poverty rate. There is substantial heterogeneity regarding in-work poverty prevalence across
households with migrant adults, with those from North-East Asia experiencing one of the highest rates
(+7.4 percentage points relative to sample average) and those from the United Kingdom experiencing a
lower rate (-1.7 percentage points).
He Urupare Tika Tangata mō te Pōharatanga ō ngā Whānau Whaimahi
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