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Wealth and saving in New Zealand: evidence from the longitudinal survey of family, income and employment

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  • Trinh Le
  • John Gibson
  • Steven Stillman

Abstract

This paper uses data from the Survey of Family, Income and Employment to estimate saving by the household sector in New Zealand during 2004--2006. Even our most conservative estimate is that at least 14% of gross income was saved during this period. By contrast, the indirectly derived Household Income and Outlay Accounts indicate (net) household saving was −12.5% per year over the same period. We also find no evidence that capital gains in housing during this time period crowded out saving or that the composition of household wealth in New Zealand differed from that in other developed countries.

Suggested Citation

  • Trinh Le & John Gibson & Steven Stillman, 2012. "Wealth and saving in New Zealand: evidence from the longitudinal survey of family, income and employment," New Zealand Economic Papers, Taylor & Francis Journals, vol. 46(2), pages 93-118, November.
    • Handle: RePEc:taf:nzecpp:v:46:y:2012:i:2:p:93-118
    DOI: 10.1080/00779954.2011.641935
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    References listed on IDEAS

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    1. Le, Trinh, 2007. "Does New Zealand have a household saving crisis?," NZIER Working Paper 2007/1, New Zealand Institute of Economic Research.
    2. Emmanuel De Veirman & Ashley Dunstan, 2008. "How do Housing Wealth, Financial Wealth and Consumption Interact? Evidence from New Zealand," Reserve Bank of New Zealand Discussion Paper Series DP2008/05, Reserve Bank of New Zealand.
    3. Leslie Hull, 2003. "Financial deregulation and household indebtedness," Reserve Bank of New Zealand Discussion Paper Series DP2003/01, Reserve Bank of New Zealand.
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    Cited by:

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    2. Littlewood, Michael, 2014. "Ageing populations, retirement incomes and public policy: what really matters," MPRA Paper 56232, University Library of Munich, Germany.
    3. Benjamin Ching & Chelsey Reid & Luke Symes, 2023. "Tax and Transfer Progressivity in New Zealand: Part 2 Results," Treasury Analytical Notes Series an23/03, New Zealand Treasury.
    4. Rob Hodgson & Jacques Poot, 2011. "New Zealand Research on the Economic Impacts of Immigration 2005-2010: Synthesis and Research Agenda," RF Berlin - CReAM Discussion Paper Series 1104, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    5. David Law & Grant M. Scobie, 2018. "KiwiSaver and the accumulation of net wealth," New Zealand Economic Papers, Taylor & Francis Journals, vol. 52(1), pages 1-20, January.
    6. David Law & Lisa Meehan, 2013. "Housing Affordability in New Zealand: Evidence from Household Surveys," Treasury Working Paper Series 13/14, New Zealand Treasury.
    7. Ramiz Rahmanov, 2015. "Banking Sector Development and Household Saving in Emerging Eastern Europe," William Davidson Institute Working Papers Series wp1089, William Davidson Institute at the University of Michigan.
    8. Paul Conway & Lisa Meehan & Dean Parham, 2015. "Who benefits from productivity growth? The labour income share in New Zealand," Working Papers 2015/01, New Zealand Productivity Commission.
    9. Mark Vink, 2016. "Intergenerational developments in household saving behaviour," New Zealand Economic Papers, Taylor & Francis Journals, vol. 50(1), pages 3-28, April.
    10. Cory Davis & Boston Hart & Benjamin Stubbing, 2024. "Household cost-of-living impacts from the Emissions Trading Scheme and using transfers to mitigate regressive outcomes," Treasury Analytical Notes Series an24/02, New Zealand Treasury.
    11. Suzuki, Tomoya, 2021. "Basic income, wealth inequality and welfare: A proposed case in New Zealand," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 118-128.

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