Time Series Analysis of Disparity between Maori and non-Maori Labour Market Outcomes in the Household Labour Force Survey

Abstract

Disparity in labour market outcomes between Maori and non-Maori is examined using Household Labour Force Survey (HLFS) data. The paper explores the nature of the ethnicity question and ethnic classification in the HLFS. It shows that there are substantial differences in labour market outcomes between those Maori who report only Maori ethnicity and those who report Maori and another ethnicity ("mixed" Maori). The paper then considers various methods of measuring disparity and uses these to examine the time series behaviour of disparity between 1985 and 1998. It concludes that disparity between Maori and non-Maori is greater today than in 1985. However, all this deterioration occurred between 1985 and 1992. Since 1992 disparity has been in decline. The bulk of time series variation in disparity between Maori and non-Maori has been driven by changes in outcomes for the sole Maori group. Mixed Maori, about a quarter share of the Maori ethnic group, has outcomes which closely track those of the non-Maori population over time.