New Zealand Families: Size, Income and Labour Force Participation

Kim Johnstone, Ian Pool

Research on family and household incomes overseas and in New Zealand has shown a consistent recent trend of declining economic wellbeing, along with increasing inequity between different family and household types, and even within each family type. This suggests the need for research and analysis to control for a range of factors beyond family type. It is also essential to understand a family’s ability to generate income and the demands it makes on that income.

This paper uses census-derived data to provide an empirical overview of changes in family income from 1981 to 1991. The labour force status of family parent(s) or partners and the average number of dependent children are used as control variables. By looking at income and controlling for various socio-economic characteristics, the paper shows which families are more vulnerable to changes in macro-economic circumstances.

The results show that, in terms of income levels, some families are more disadvantaged than others and are therefore more vulnerable to changing economic circumstances. Family size, labour force status and age of parent(s) or partners are shown to be important indicators of vulnerability. The paper concludes by noting various issues for families identified as vulnerable.