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KiwiSaver and the Accumulation of Net Wealth

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Abstract

The objective of this paper is to analyse the extent to which membership of KiwiSaver has been associated with greater accumulations of net wealth. The paper utilises two linked sources of data which cover the period 2002 to 2010: Statistics New Zealand’s Survey of Family, Income and Employment and Inland Revenue Department administrative data on KiwiSaver membership. Two approaches are employed: difference-in-differences (where the outcomes of interest are changes in net wealth) and various panel regression techniques. Results appear consistent with earlier evaluations of KiwiSaver. Neither approach suggests KiwiSaver membership has been associated with any positive effect on net wealth accumulation.

Suggested Citation

  • David Law & Grant M Scobie, 2014. "KiwiSaver and the Accumulation of Net Wealth," Treasury Working Paper Series 14/22, New Zealand Treasury.
    • Handle: RePEc:nzt:nztwps:14/22
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    File URL: https://treasury.govt.nz/sites/default/files/2014-11/twp14-22.pdf
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    References listed on IDEAS

    as
    1. Anton Samoilenko & David Law, 2014. "KiwiSaver: Comparing Survey and Administrative Data," Treasury Working Paper Series 14/06, New Zealand Treasury.
    2. Trinh Le & Grant Scobie & John Gibson, 2009. "Are Kiwis saving enough for retirement? Evidence from SOFIE," New Zealand Economic Papers, Taylor & Francis Journals, vol. 43(1), pages 3-19.
    3. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-793, September.
    4. Grant M. Scobie & Katherine Henderson, 2009. "Saving Rates of New Zealanders: A Net Wealth Approach," Treasury Working Paper Series 09/04, New Zealand Treasury.
    5. 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.
    6. Trinh Le & John Gibson & Steven Stillman, 2010. "Household Wealth and Saving in New Zealand: Evidence from the Longitudinal Survey of Family, Income and Employment," Working Papers 10_06, Motu Economic and Public Policy Research.
    7. David Law & Lisa Meehan & Grant M Scobie, 2011. "KiwiSaver: An Initial Evaluation of the Impact on Retirement Saving," Treasury Working Paper Series 11/04, New Zealand Treasury.
    8. David Law & Lisa Meehan & Grant M. Scobie, 2017. "KiwiSaver: an evaluation of a new retirement savings scheme," New Zealand Economic Papers, Taylor & Francis Journals, vol. 51(3), pages 262-280, September.
    9. David Law & Lisa Meehan, 2013. "Housing Affordability in New Zealand: Evidence from Household Surveys," Treasury Working Paper Series 13/14, New Zealand Treasury.
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    Cited by:

    1. Melissa van Rensburg, 2023. "Long-run trends in New Zealand’s real neutral interest rate," Treasury Analytical Notes Series an23/05, New Zealand Treasury.
    2. Anne-Marie Brook, 2014. "Options to Narrow New Zealand’s Saving – Investment Imbalance," Treasury Working Paper Series 14/17, New Zealand Treasury.
    3. Patricia Fraser & Lynn McAlevey, 2015. "New Zealand regional house prices and macroeconomic shocks," Journal of Property Research, Taylor & Francis Journals, vol. 32(4), pages 279-300, December.

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    More about this item

    Keywords

    KiwiSaver; Net wealth; New Zealand; Longitudinal data; Administrative data;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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