Abstract:
This paper describes income mobility patterns in New Zealand over the short to medium term. It uses a special dataset which tracks Household Labour Force Surveys over the period from 2007 to 2020, using 2013 census data. The measure of income is total family taxable income per adult equivalent person. The income unit is the individual. Over the period 2007-2020, around half of the New Zealand working-age population stayed in the same income quintile over four years, and 40% over seven to eight years. Of those initially in the bottom quintile, 57% remained in that quintile over four years, while 68% of those initially in the top quintile remained in that quintile four years later. Of those who initially had incomes less than 50% of the median income per adult equivalent person, about half remained in that category after six to seven years. Income mobility for working-age New Zealanders is broadly similar to other OECD countries.
