Income Inequality and the Accounting Period in New Zealand: Evidence from Administrative Data

Abstract

This paper examines the effect on taxable income inequality among New Zealand individuals of extending the accounting period beyond a single year. Typically, inequality comparisons are based on a single year accounting period and involve cross-sectional measures, ignoring the role of income dynamics. The paper uses a specially constructed dataset of the New Zealand taxpayer population since 2000. Results are reported for the population as a whole and for groups distinguished by age, gender, ethnicity and educational qualifications.