Explaining relative labour market outcomes for Maori and non-Maori

Abstract

This study investigates the level of discrimination between non-Maori and Maori in the New Zealand labour force. Multinomial logit techniques and wage regression analysis are combined so as to decompose the wage differential into components explained by differences in productivity characteristics, job discrimination and wage discrimination. Evidence of both job discrimination and wage discrimination is found. Small sample sizes meant that part-Maori data could not be utilised. The lack of data also impacted on the reliability of the results from the Maori wage regressions. Therefore, the major policy implication from this paper is that more extensive and detailed sampling of minority ethnic groups be carried out so that informative and accurate analysis of labour market disparities can be obtained,