Category: politics

There has been plenty of talk about the “gender gap”, which is the fact that the average Kiwi woman earns less per hour of labour than the average Kiwi man. This article looks into why this might have come about.

The correlation between being male and median personal income was on the border of statistical significance, at 0.23. That tells us that the average Kiwi male controls an income that is a fair bit larger than what the average Kiwi female controls. Looking at this on a more granular level, we can understand why.

There is very little difference between men and women when it comes to the plum jobs. The correlation between being male and having a personal income between $100-150K was 0.01 and with having a personal income of $150K+ it was 0.03.

So being a male and working in a plum job is essentially uncorrelated. However, as one goes down the income bands, it is possible to see that there are more men in middle income jobs than women, and more women in lower income jobs than men.

The strength of the correlation with being male peaks at $50-60K, where it is 0.22. A person in this income band is likely earning between $25 and $30 per hour, or at least 50 hours a week, so this is where a solid part of the full-time work force is cranking away.

As one goes even further down the income bands, however, we can see that an ever higher proportion of the workers are women. In the $30-35K income band there is a perfect absence of correlation with regard to male or female, but every income band lower than this has a positive correlation with being female.

The most significant is having a loss or no income, which has a correlation of 0.27 with being female.

By far the heaviest contributor to the fact that men occupy disproportionately more middle income bands than women is the moderately significant correlation between being male and working full-time (0.48), and the moderately significant negative correlation between being male and being unemployed (-0.48).

After all, it’s hardly suprising that a man’s paycheck is 20% bigger if he also works 20% more hours. In fact, the gap perhaps ought to be even larger than this because men work the vast majority of overtime hours.

There is no significant correlation between being male and working for a wage or salary – this was 0.11. There were, however, significant correlations between being self-employed and male (0.40) and being self-employed with employees and male (0.50).

This tells us that a disproportionate amount of the risk in the area of employment is borne by men. Women are more likely to take a safe job that had slim prospects of both advancing and of being fired or made redundant, whereas men were more likely to take entrepreneurial risks or to take on jobs in highly competitive (and highly rewarding) environment.

For example, there were significant correlations between being female and working in the healthcare and social assistance industry (0.43) and the education and training industry (0.32), and a near significant one between being female and working in administrative or support services (0.17).

In all three of these industries it is common to have a regular, secure 9 to 5 job.

On the other side of the coin, there were significant correlations between being male and working in the agriculture, forestry and fishing industry (0.45), the hospitality industry (0.28), the construction industry (0.25) and the rental, hiring and real estate services industry (0.24).

All of those industries are characterised by it being common for either workers to have the option of working longer hours or being more or less forced into it. The hospitality and rental, hiring and real estate industries in particular make it easy for anyone wanting to work 60+ hours a week to do so.

So talk of a “gender gap” that evinces an instituional and endemic underpayment of women across the nation is hyperbole. The best jobs are split evenly between men and women and, below that, men earn more because they choose to work themselves to death at a much higher rate.

Somewhat surprisingly, there is a correlation of 0.42 with being male and living on the South Island. That might seem very strange until one takes into account the vastly accelerated death rate of Maori and Pacific Islander males, especially past age 50 or so. Because most of these men live on the North Island, their early deaths leave a significant imbalance of women among the remaining communities.

Other facets of this same phenomenon can be observed in the significant correlation between being female and being Maori (0.32). Obviously, as males and females are born at roughly the same rate, much of this correlation has to be explained by a greater death rate among Maori men.

Some may be interested to observe that there were significant correlations between being female and belonging to a number of religious traditions generally associated with disadvantaged people. In particular, these were significant correlations between being female and following any of Mormonism, Ratana, Jehovah’s Witnesses, Maori Christian, Pentecostalism or Christian not further defined.

The main reason for this is the tendency for women to turn to religion or spirituality after a significant male other has left their lives, particularly in the case of Maori women.

*

This article is an excerpt from Understanding New Zealand, by Dan McGlashan, published by VJM Publishing in the winter of 2017.

As the Maori Party split away from Labour, so did the MANA Party split away from the Maori Party, and then it joined up with Kim Dotcom’s Internet Party to become the Internet MANA chimera. But who did Hone Harawira’s machine end up appealing to?

Like the Maori Party, Internet MANA appealed to Maoris. The correlations between voting Internet MANA in 2014 and with both voting Maori Party in 2014 and being Maori were 0.84.

Correspondingly, there are strong correlations between voting Internet MANA in 2014 and voting for all of the Maori-heavy parties in 2014. Between voting Internet MANA in 2014 and voting Aotearoa Legalise Cannabis Party in 2014 the correlation was 0.76; with voting New Zealand First in 2014 it was 0.44; and with voting Labour in 2014 it was 0.41.

Curiously, Internet MANA voters were exactly as unlikely to have sympathies for National or Conservative as Maori Party voters. As with the Maori Party, the correlation between voting Internet MANA in 2014 and voting National in 2014 was -0.75, and the correlation with voting Conservative in 2014 was -0.64.

Perhaps the major demographic difference between Maori Party voters and Internet MANA ones is that the latter were slightly less Maori and slightly more Pacific Islander and Asian. The correlation between voting Internet MANA in 2014 and being a Pacific Islander was 0.07, and with being Asian it was -0.23 (compared to 0.01 and -0.30 for the correlations between these two groups and voting Maori Party).

In fact, the general demographic trend is that Internet MANA voters, despite being generally disenfranchised, are doing slightly better than Maori Party voters. Correspondingly, the correlation between voting Internet MANA in 2014 and turnout rate in 2014 was, at -0.69, slightly weaker than for the Maori Party (-0.74).

Although most of the demographic distinctions are subtle, one of the clearest is when it comes to education. The correlation between voting Internet MANA in 2014 and having no qualifications was 0.42, which was weaker than the equivalent for the Maori Party. Also, unlike with voting for the Maori Party in 2014, voting for Internet MANA in 2014 had no significant negative correlation with holding either of the two highest academic qualifications.

Further underlining the minor class differences, Internet MANA voters were marginally less likely to be on the unemployment or invalid’s benefits, and marginally more likely to be on the student allowance. Also, they were much less likely to work in manufacturing and slightly less likely to be regular tobacco smokers than Maori Party voters.

They were, however, essentially the same age. The correlation between voting Internet MANA in 2014 and median age was -0.65, making them the smallest smidgen older than Maori Party voters. This underlines the degree to which Internet MANA differentiates itself from the Maori Party primarily through subtle class differences and not age.

Curiously, Internet MANA voters were more likely to be self-employed than Maori Party voters, but were less likely to be self-employed with employees. This might reflect the degree to which Internet MANA voters, or at least a significant cadre of them, are more likely to be immigrants and therefore less likely to be established than Maoris.

It may be that, in so far as Internet MANA appeals to a newer sort of New Zealander, it also appeals to a sort of person who does not have the intergenerational poverty and trauma that many Maoris suffer from. This may explain the small differences in wealth, health and educational outcomes.

*

This article is an excerpt from Understanding New Zealand, by Dan McGlashan, published by VJM Publishing in the winter of 2017.

Knowing about the category of person who is self-employed with employees tells us a lot about the sort of person who has most of the power in New Zealand at the moment.

This sort of person has more power than anyone because they can legally cause more disruption than anyone. No politician cares too much if a single individual threatens to leave the electorate, but if an employer threatens to relocate their company with its 200 jobs then a politician will suddenly care very intently.

Surprisingly, there is no particularly strong difference between those who work for a wage or salary, those who are self-employed, and those who are self-employed with employees when it comes to median personal income.

These three groups have correlations of between 0.54 and 0.41 with median personal income, with the self-employed the strongest and the self-employed with employees the weakest.

However – as this section seeks to illuminate – holding political power is not merely a function of wealth, although wealth is a contributing factor.

There were very strong correlations between being of European descent and both being self-employed (0.58) and being self-employed with employees (0.70). This relates to the point made above about the power in an economy being held by a sort of person who was not necessarily the same as those who made the money.

Pacific Islanders were the least likely to be in either of those two categories. The correlation between being a Pacific Islander and being self-employed was -0.50, and with being self-employed with employees it was -0.61.

Being Maori was also negatively correlated with being in these categories of employment status: -0.44 with being self-employed and -0.36 with being self-employed with employees.

This reflects the fact that Islanders generally have less social capital than Maoris, despite often being better educated, and that Islanders generally have less financial capital than Asians, despite often having moved to New Zealand earlier and being more culturally established.

Anglicans comprise a large proportion of the power elite, as can be seen by the correlations between being Anglican and being self-employed (0.40) and being Anglican and being self-employed with employees (0.58).

This latter correlation is strong enough to tell us that Anglicans have a lot of political power in New Zealand through occupying essential positions in industry.

Other religious orientations with the strongest correlations with being self-employed with employees were Presbytarianism (0.45), having no religion (0.37) and Brethren (0.22).

These four groups: Anglicans, Presbytarians, those from no religious tradition and the Brethren, comprise the true power elite of New Zealand. The reason for this is because it is these people who own everything: generally they are directly descended from early settlers and owners of large farms.

Here it is possible to further illuminate the distinction within the highly-skilled occupations between the managers who run everything and the professionals they depend on to get things done.

Certain religious traditions had positive correlations with working for a wage or salary but negative correlations with being self-employed with employees.

Catholicism was the most notable of these. The correlation between being Catholic and working for a wage or salary was 0.30, with being self-employed it was -0.23 and with being self-employed with employees it was -0.31.

Other religious traditions which had positive or near neutral correlations with working for a wage or salary but negative correlations with being self-employed with employees were Buddhism (0.11 versus -0.24, respectively), Hinduism (-0.03 versus -0.44) and Islam (-0.03 versus -0.49).

Ultimately these statistics reflect how these latter traditions have higher proportions of recent immigrants who, despite often being highly educated and earning good money, have not had the time to establish themselves as part of the power elite. These immigrants often moved to New Zealand because their high skills were needed by the landowners and managers who were more established.

It’s also possible to observe the fault lines of a generational conflict between the Baby Boomers, whose education is patchy, and Generation X and the Millennials, who generally have modern educations but who are yet to dislodge the deeply entrenched Boomers.

The correlation between having a Master’s degree and working for a wage or salary was 0.33, and with being self-employed with employees it was actually negative, at -0.02. This latter correlation is incredible if one also considers that the correlation between having NZQA Level 1 (School Certificate) as one’s highest qualification and being self-employed with employees was 0.22.

Explaining much of this comes down to the fact that establishing oneself as a member of the power elite is more a function of age than of education.

The correlation between median age and being self-employed with employees was a strong 0.71, whereas with working for a wage or salary it was -0.37. This tells us that, over and above just about anything else, the power elite is old, and the people they hire to do their bidding are young.

To take a more granular perspective, the correlation between being aged 65+ and being self-employed with employees was 0.56, which is interesting if one considers that any person in this age bracket can also claim a pension of $350+ per week which is not means tested.

This is not just a function of greed, of course: realistically, many of the people running a company, especially if it’s one they own, cannot simply give up all of their responsibilities at one moment.

Generally they employ the under-50s. The correlation between being in the 20-29 age bracket and working for a wage or salary was 0.37, and between being in the 30-49 age bracket and working for a wage or salary was 0.52.

The power elite is also much more likely to be male than female. The correlation between being male and working for a wage or salary was 0.11, but the correlation between being male and being self-employed with employees was 0.50.

This isn’t simply a matter of male nepotism: the correlation between being male and doing unpaid work in the family business was 0.48. The truth is that it is in the nature of Kiwi men to work, and the vast majority of us would rather work than just sit around or have nothing to do.

The last point about the power elite that might not be well understood is the degree to which it is intergenerational, especially in the case of farming interests.

Some light can be shed on how strong this degree is by consideration of the correlation between working in agriculture, forestry and fishing and doing unpaid work in the family business, which was an extremely strong 0.90.

*

This article is an excerpt from Understanding New Zealand, by Dan McGlashan, published by VJM Publishing in the winter of 2017.