1. The Income Gap
in NZ
How does income gap affect people
in New Zealand?

2. Outline
・The gap between rich and poor
・The Income Gap in OECD
・The Income Gap Growth in OECD
・Main problem of the Income Gap
・conclusion

3. The gap between rich and poor
New Zealand
-Population : 4.4milion (2010)
-GDP : 116.4billion US dollars (2008)
Source: OECD FACTBOOK 2010
Question: What is the X?
“Bottom 50% of population hold
X percent of nation’s wealth.”

4. The gap between rich and poor
Source :Statistics NZ, Wealth and Disparities in NZ report
Percent of total net worth Cumulative(%)
TOP 1% 16.4 TOP 1% 16.4
Next 4% 21.3 TOP 5% 37.4
Next 5% 14.1 TOP 10% 51.8
Next 40% 43.0 TOP 50% 94.8
Bottom 50% ALL 100
5.2％

5. The Income Gap In OECD countries
Source: OECD FACTBOOK 2010
“Gini coefficients” of income inequality in OECD countries, mid-2000s
0.5
0.50
1 = 1 person who is richest has all of income
0.45
0.4
0.40
0.35
NZ = 0.335 point
0.3
Ave= 0.311 point
0.30
0.25
0.2
0.20

6. The Income Gap Growth In OECD countries
Source: OECD FACTBOOK 2010
Cumulative change (Mid-1980s to Mid-2000s)
- 0.08 - 0.04 0.00 0.04 0.08
AUS
“Point changes”
AUT in the Gini coefficient
BEL
CAN
CZE
DNK
FIN
FRA
DEU
GRC
HUN
IRL Mid-1980s
ITA
JPN
LUX
~Mid2000s
MEX
NLD
NZL
NZL
NOR
PRT
ESP
+0.064 point
SWE
TUR
GBR
USA
OECD-24
OECD-22

7. What is the main problem?
・Poverty in children
NZ is ranked 28th
(out of 30 countries in the member of OECD)
Last year…
about 100 children died because of poverty.

8. What is the main problem?
・A Vicious Circle
Poor Parent
Poor Child
Poor Parent

9. Conclusion
・Share the Income to those at the bottom
Progressive taxation(rate)
Promote a nation’s welfare for the bottom
(especially in health, education for child)
・Improve the gap of wages and salaries
Work harder
Decrease part time job rate

10. END