January 28, 2014 10:00am by David Farrar

Mitchell on income inequality

From Lindsay Mitchell.

The Gini coefficient is what most on the left say is the best measure of income inequality. This clearly shows no worsening trend, and in fact most of the OECD is getting more unequal, but not New Zealand.

Mitchell also looks at the standard measures of poverty. These are not measures the right might use such as actual need, but the normal proportion of median income. What is the record for NZ from 2007 to 2012:

AHC fixed line 60% dropped from 18% to 14%
AHC moving line 60% dropped from 18% to 17%
AHC moving line 50% dropped from 13% to 12%
BHC moving line 60% dropped from 18% to 16%

So when a politician claims NZ has more poverty or income inequality, just ask them a simple question. On what measure.