What is the distribution of income in New Zealand?

By ethnicity, sex, age or qualifications

Two potential data sources for answering this question are the New Zealand Income Survey (NZIS) and the Linked Employer-Employee Dataset (LEED) person-level. Note that the LEED person-level source will only provide data by sex and age, not by ethnicity or by qualifications. The advantages and disadvantages of using each of these data sources are outlined below.

New Zealand Income Survey

Advantages of using NZIS data:

• Includes ethnicity and qualifications: The NZIS includes the demographic variables ethnicity and qualifications, whereas LEED person-level data does not.
• More Timely: NZIS data is more timely than LEED person-level data and is released approximately three months following the period to which the data references. However, it should be noted that the NZIS is released for the June quarter only. This means that ten months after the most recent June release, the NZIS will no longer be more timely than the LEED person-level release.

Disadvantages of using NZIS data:

• No breakdowns below regional council level: The NZIS is a sample survey and, consequently, is subject to sampling error. For this reason the NZIS loses statistical accuracy if broken down to smaller regional areas below the regional council level.
• No detailed demographic breakdowns at regional level: If you want to know the income of a specific demographic group (such as gender, age or ethnicity) within a specific region, the NZIS is not useful due to sampling errors. If you want income measures for smaller detailed sub-populations then the census is a better data source.
• Released for June quarter only: Although NZIS data is more timely than LEED person-level data and is released approximately three months following the period to which the data references, it should be noted that the NZIS is released for the June quarter only. This means that ten months after the most recent June release, the NZIS will no longer be more timely than the LEED person-level data release.

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Linked Employer-Employee Dataset person-level

Advantages of using LEED person-level data:

• Accuracy: LEED person-level data offers comprehensive population coverage because it uses administrative rather than survey data. For this reason, LEED person-level data is not subject to sampling error and is particularly accurate.
• Regional Breakdowns: The comprehensive population coverage and accuracy of LEED person-level data allows detailed regional breakdowns without compromising the accuracy of the data. However, detailed outputs are subject to restrictions imposed by Statistics NZ's commitment to ensuring the confidentiality of all data released.

Disadvantages of using LEED person-level data:

• Does not include non-taxable income: LEED person-level data only covers taxable income. It does not include income from non-taxable sources such as tax credits and non-taxable government transfers (for example the disability allowance or the accommodation supplement).
• Few demographic variables: LEED person-level data provides few demographic variables and does not include ethnicity.
• No household income:
LEED person-level data only provides annual personal income. It does not provide annual household income.
• Less timely: LEED person-level data is not as timely as NZIS data. LEED person-level data releases are made available in the year following the tax year to which the data references.

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