Trends in the household income distribution: 2007-2021

The distribution of household income in New Zealand is continually changing and is expected to significantly transform in the years ahead due to demographic trends and shifts in the labour market. This raises an important question: how can we ensure that our tax and transfer system can support future generations of New Zealanders, especially as the population ages and work patterns evolve in response to technological advancements and environmental challenges? This note lays the groundwork for future research by presenting comprehensive data on household income distributions over the past 14 years. It goes beyond headline statistics on incomes, inequality, and poverty by using unit record data from Stats NZ to supplement existing outputs and reports, such as Perry (2019, 2022). Through visual representations, this note presents household income distributions for various types of households from 2007 to 2021, shedding light on trends and patterns. Additionally, the note delves into the impact of an aging population by creating a counterfactual distribution based on 2007 age demographics, allowing for further investigation into this important demographic shift. The detailed data and analyses presented in this note serve as a valuable foundation for future work in understanding household incomes in New Zealand.