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Aotearoa Migration Research Network (AMRN) seminar

Date Tuesday 21 June 2022
Time 11am - 12pm
Where https://waikato.zoom.us/j/83541369733
Presenter Ahmed Zohirul Islam
Contact Jessica Terruhn
Contact email jterruhn@waikato.ac.nz
Website tengira.waikato.ac.nz/people/jterruhn
Admission Cost Free

Effects of Immigration on Income Inequality in New Zealand

Presenter: Ahmed Zohirul Islam

Abstract

Introduction This study investigated the level of income inequality and change in income inequality between 2013 and 2018 – a period when the number of immigrants reached to the peak in Aotearoa New Zealand. We explored two routes (composition effect and within-group distribution effect) through which international migration may affect the aggregate income distribution between 2013 and 2018.

Objectives Present study aimed to decompose the within-group inequality and between-group inequality and to decompose the change in income inequality between 2013 and 2018.

Methods We used the census 2013 and census 2018 data. MLD decomposition technique was used to decompose the within-group inequality and between-group inequality and population sub-group decomposition of Mookherjee and Shorrocks (1982) approach was used to decompose the change in inequality over time.

Results The level of income inequality rose by 6.3% between 2013 and 2018 in Aotearoa New Zealand. The highest level of income inequality was observed among low-skilled immigrants followed by high-skilled immigrants and low-skilled and high-skilled New Zealanders in 2018. The largest share of inequality was due to within-group inequality, the between-group inequality accounted for only just 5%.

Conclusions Our study concludes that the level of income inequality grew between 2013 and 2018. The composition effect and group-specific distribution effect were inequality-increasing for high-skilled immigrants while these effects were inequality-reducing for low-skilled immigrants. Since the magnitude of inequality-increasing effects of high-skilled immigrants was higher than that of the inequality-reducing effects of low-skilled immigrants, it may lead to inequality-increasing change between 2013 and 2018 in Aotearoa New Zealand.

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