THE GENDER WAGE GAP IN

NEW ZEALAND:  THEORY AND EVIDENCE

 

STUDENT PAPER NO.3

STEPHEN SUMMERS and Stuart Birks

 

 

 

CENTRE FOR PUBLIC POLICY EVALUATION

2000

 

Student Paper No.03

ISSN. 1174 – 5193

Price $15

 

 

Published by

Centre for Public Policy Evaluation

College of Business, Massey University

Palmerston North

NEW ZEALAND

                                                                                                                                                                         July 2000


TABLE OF CONTENTS

Acknowledgments

Table of Contents

List of Figures

List of Tables

List of Abbreviations

Abstract

 

Click here for contents, etc. as a pdf file

Chapter One:       Introduction (pdf)

Chapter Two:       The Education Sector and the Gender Wage Gap (pdf)

Chapter Three:     Occupation and Family Responsibilities and the Gender Wage Gap (pdf)

Chapter Four:       The Gender Wage Gap:  Theories and Policies (pdf)

Chapter Five:       Summary and Conclusions (pdf)

Appendices (pdf) Note that Appendix B is incomplete in the .pdf version. It is available here in .html.

References (pdf)

 

LIST OF FIGURES

 

Figure                                                                                                                                     Page

2.2.1     Attendance of 5th Year Students at New Zealand Secondary Schools, 1965-1995.        6

 

2.2.2     Attendance of 6th Year and Over Students at New Zealand Secondary Schools,

            1965-1995.                                                                                                               7

 

2.2.3     School Participation Rates by Age and Sex, 1997.                                                       7

 

2.2.4     Retention Rates for 14-16 Year Olds, 1986-1998.                                                       8

 

2.2.5     Retention Rates for 14-17 Year Olds, 1986-1998.                                                       8

 

2.2.6     Retention Rates for 14-18 Year Olds, 1986-1998.                                                       9

 

2.8.1     Total Number of Students Attending New Zealand Universities by Gender,

            1965-1997.                                                                                                             23

 

2.8.2     Internal Full-Time Students Attending New Zealand Universities by Gender,

            1965-1997.                                                                                                             23

 

2.8.3     Internal Part-Time Students Attending New Zealand Universities by Gender,

            1965-1991.                                                                                                             24

 

2.8.4     Extramural Students Attending New Zealand Universities by Gender, 1965-1991.       23

 

2.8.5     New Zealand Secondary Students Enrolled in Seventh Form Accounting,

            1965, 1970, 1975, 1980, 1985 and 1990.                                                                    28

 

2.8.6     Bachelor Degrees in Accounting Awarded in New Zealand,

            1975, 1980, 1985 and 1990.                                                                                      29

 

2.8.7     New Zealand Secondary School Students Enrolled in Seventh Form Economics,

            1965, 1970, 1975, 1980, 1985 and 1990.                                                                    29

 

2.8.8     Bachelor Degrees in Economics Awarded in New Zealand,

            1965, 1970, 1975, 1980 and 1989.                                                                             29

 

2.8.9     Bachelor Degrees in Engineering Awarded in New Zealand,

            1970, 1975, 1980, 1985, 1990 and 1995.                                                                    31

 

2.8.10   Bachelor Degrees in Psychology in New Zealand,

            1965, 1970, 1975, 1980, 1985 and 1989.                                                                    32

 

2.9.1     Students Enrolled in Primary Teacher Training in New Zealand,                                33

            1965, 1970, 1975, 1980, 1985 and 1990.

 

2.9.2     Students Enrolled in Secondary Teacher Training in New Zealand,

            1965, 1970, 1975, 1980, 1985 and 1990.                                                                    34


 

 

3.1.1     Labour Force Participation Rates for Males and Females in New Zealand,

            1971, 1976, 1981, 1986, 1991 and 1996.                                                                    39

 

3.1.2     Percentage Change in Number of Males and Females Employed in New Zealand,

            1971-1976, 1976-1981.                                                                                            40

 

3.1.3     Percentage Change in Number of Males and Females Employed in New Zealand,

            1986-1991, 1991-1996.                                                                                            41

 

3.2.1     Breakdown of New Zealand Part-Time Workers by Hours Employed Per Week,

            1996.                                                                                                                      42

 

3.2.2     Breakdown of New Zealand Full-Time Workers by Hours Employed Per Week,

            1996.                                                                                                                      43

 

3.8.1     Total Earnings for the Female/Male Ratio of Average Hourly Earnings (1988-1998)

            and Average Weekly Earnings (1977-1998) in New Zealand.                                    62

 

3.8.2     Total Earnings for the Female/Male Ratio of Average Hourly

            and Weekly Ordinary Time in New Zealand, 1973-1998.                                           62

 

3.8.3     Total Earnings for the Female/Male Ratio of Average Hourly

            And Weekly Overtime in New Zealand, 1973-1998.                                                  62

 

3.8.4     Full-Time Workers by Age Bracket in New Zealand, 1996.                                       64

 

3.8.5     Part-Time Workers by Age Bracket in New Zealand, 1996.                                      65

 

3.8.6     Ratio of the Percentage of the Female/Male Ratio of Incomes for those

            Earning $40,000+ in 1986, 1991 and 1996.                                                                 79

 

4.2.1     Unemployment Rate for Males and Females in New Zealand,

            1971, 1976, 1981, 1986, 1991 and 1996.                                                                       

 


 

LIST OF TABLES

 

Table                                                                                                                           Page

2.2.1     Percentage Change in Age Group for the Total New Zealand Population,

            1966-1996.                                                                                                               5

 

2.2.2     Numbers of Pupils Attending New Zealand Secondary Schools, 1965-1995.                 6

 

2.2.3     Highest Attainment of School Leavers by Gender, 1987-1997.                                     9

 

2.2.4     Percentage of Sitting Students Awarded Higher Grades in New Zealand, 1997.          10

 

2.3.1     Subjects Taken by All New Zealand Secondary School Students in Form Five

            at 1 July, 1965, 1970, 1975, 1980, 1985 and 1990.                                                      11

 

2.3.2     Subjects Taken by All New Zealand Secondary School Students in Form Six

            at 1 July, 1965, 1970, 1975, 1980, 1985 and 1990.                                                      13

 

2.3.3     Subjects Taken by All New Zealand Secondary School Students in Form Seven

            at 1 July, 1965, 1970, 1975, 1980, 1985 and 1990.                                                      14

 

2.3.4     Percentage of Year 3 School Certificate Students Gaining

            A or B Grades in Selected Subjects, 1996.                                                                17

 

2.3.5     New Zealand University Bursaries/Entrance Scholarship Examinations:

            Percentage of Papers Graded S, A or B in Selected Subjects, 1997.                           17

 

2.7.1     Destination of 1996 School Leavers in Further Education and Training in July, 1997.   22

 

2.8.1     Courses taken by Full-Time and Part-Time Students in New Zealand,

            1965, 1970, 1975, 1980, 1985, 1990 and 1995.                                                           25

 

2.8.2     Enrolments for Degrees in at New Zealand Universities, 1998.                                  30

 

2.9.1     Enrolments in Technical Education in New Zealand, 1965 and 1970.                          34

 

2.9.2     Enrolments in International Standard Classification of  Education Level Five

            Polytechnic Programmes in New Zealand, 1985, 1990 and 1995.                               35

 

2.9.3     Full-Time Occupations for the New Zealand Population Aged 40-65+, 1996.              35

 

3.1.1     Number of Male and Female Workers Employed Full-Time and Part-Time in

            New Zealand, 1971, 1976, 1981, 1986, 1991 and 1996.                                              40

 

3.3.1     Number of Female-Dominated Occupations and Percentage of Females Employed

            in them using 60, 70, 80 and 90 Percent Definitions, in New Zealand,

            1971, 1976, 1981, 1986, 1991 and 1996.                                                                    45

 

3.3.2     Number of Male-Dominated Occupations and Percentage of Males Employed

            in them using 60, 70, 80 and 90 Percent Definitions, in New Zealand,

            1971, 1976, 1981, 1986, 1991 and 1996.                                                                    46

 

3.4.1     Percentage of the EMLF Employed in the Seven Main Occupational Classifications

            in New Zealand, 1971, 1976, 1981, 1986, 1991 and 1996.                                           47

 

 

 

3.4.2     Percentage of the EFLF Employed in the Seven Main Occupational Classifications

            in New Zealand, 1971, 1976, 1981, 1986, 1991 and 1996.                                           48

 

3.4.3     The Highest Male-Dominated Occupations (Based on Percentage Male in

            Each Occupation) in New Zealand, 1971, 1976 and 1981.                                          49

 

3.4.4     The Highest Female-Dominated Occupations (Based on Percentage Female in

            Each Occupation) in New Zealand, 1971, 1976 and 1981.                                          50

 

3.4.5     The Highest Male-Dominated Occupations (Based on Percentage Male

            in Each Occupation) in New Zealand, 1986, 1991 and 1996.                                      50

 

3.4.6     The Highest Female-Dominated Occupations (Based on Percentage Female in

            Each Occupation) in New Zealand, 1986, 1991 and 1996.                                          51

 

3.5.1     The MM, ID and SR* Indices of Horizontal Occupational Segregation

            in New Zealand, 1971, 1976, 1981, 1986, 1991 and 1996.                                           54

 

3.6.1     Summary of Results for CMD, SMD and St Indices for New Zealand Studies,

            1956, 1961, 1966, 1971, 1976, 1981 and 1986.                                                           57

 

3.6.2     The CMD, SMD and St Measurement of Vertical Gender Segregation for

            White-Collar Workers in New Zealand, 1971, 1976, 1981, 1986, 1991 and 1996.         58

 

3.6.3     The CMD, SMD and St Measurement of Vertical Gender Segregation for

            All Workers in New Zealand, 1971, 1976, 1981, 1986, 1991 and 1996.                        59

 

3.8.1     Percentage of Female Workers in the 20-24 and 25-29 Age Bracket in New Zealand,

            1986, 1991 and 1996.                                                                                              67

 

3.8.2     Percentage of Male Workers in the 20-24 and 25-29 Age Bracket in New Zealand,

            1986, 1991 and 1996.                                                                                              68

 

3.8.3     Average Salary Comparisons for Diploma/Bachelor Graduates in New Zealand,

            1991 and 1996.                                                                                                       69

 

3.8.4     Average Salary Comparisons for Postgraduates in New Zealand, 1991 and 1996.       71

                                                                                                                                            

3.8.5     Female/Male Earnings Ratio for Recent Graduates in New Zealand,

            1975, 1980, 1985, 1990 and 1993.                                                                             72

 

3.8.6     Female/Male Earnings Ratio for Recent Graduates in New Zealand, 1996 and 1997.  73

 

4.5.1     Work Fatalities and Injuries in the New Zealand Work Force,

            Financial Year, 1989/90.                                                                                          91

 

 


 

 

 

 

LIST OF ABBREVIATIONS

 

American Association of University Women                               AAUW

 

Crude Measure of Differentiation                                               CMD

 

Equal Employment Opportunities                                                EEO

 

Employment Contracts Act                                                        ECA

 

Employment Equity Act                                                             EEA

 

Equal Pay Act                                                                           EPA

 

Equivalent Male Labour Force                                                   EMLF

 

Equivalent Female Labour Force                                                EFLF

 

Gini Coefficient Index                                                                G

 

Human Rights Commission Act                                                  HRCA

 

Index of Dissimilarity                                                                 ID

 

Marginal Matching Index                                                           MM

 

National Longitudinal Survey                                                      NLS

 

not applicable                                                                            n.a

 

not elsewhere classified                                                             n.e.c

 

Public Service Association                                                         PSA

 

Scholastic Aptitude Test                                                            SAT

 

Sex Ratio Index                                                                         SR

 

St Ratio                                                                                     St

 

Standardised Measure of Differentiation                                     SMD

 

Standardised Sex Ratio Index                                                     SR*

 

Third International Mathematics and Science Study                     TIMSS

 

Women and Employment Index                                                  WE

 

ACKNOWLEDGMENTS*

 

I wish to thank all those lecturers and fellow students within the various departments at Massey University for their contributions and ideas towards this thesis.  Especially, I would like to take this opportunity to gratefully acknowledge that I am indebted to my supervisor Stuart Birks for his time, assistance and ideas that he bestowed on me.  Also, I wish to thank my partner for spending many hours editing and checking my thesis, and for the encouragement and ideas she gave me.

 

This thesis is dedicated to my mother and father who have always provided love and support throughout my life and encouraged me to make the most of every opportunity presented.  

 

*   This is a revised version of a thesis by Stephen Summers, supervised by Stuart Birks, in partial fulfilment of the requirements for a Master of Business Studies. It is a significant development beyond earlier unpublished work in this general area that was undertaken by Stuart Birks, Gary Buurman, Cameron Wheeler, Kevin Heagney and Timothy Savell in 1997 and 1998.

 

 

 

ABSTRACT

 

This thesis focuses on the issue of the gender wage gap in New Zealand that has been a prevalent topic in most countries and in a variety of academic circles over recent decades.  Those who conclude that females are still being discriminated against in the labour market point to the use of a combination of policies, such as affirmative action and comparable worth, as a possible solution.  Opponents to this view contend that there are many reasons that, combined, explain why females often earn less than their male counterparts. This thesis, encompassing a variety of statistics, illustrates that females have made, and continue to make, strong progress in all facets of the labour market.  Thus, in conclusion, legislation to introduce new policies to narrow any gap is a road fraught with too many dangers and one that we do not need to go down.



 

 

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