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ISER Working Paper Series 2009-18

Variations in earnings growth: evidence from earnings transitions in the NZ Linked Income Survey


Publication date

11 Jun 2009


This paper uses the New Zealand Linked Income Supplement (LIS) to investigate the
annual transitions in hourly earnings of working age individuals over the years 1997
to 2004. I first construct transition matrices for annual changes in weekly and hourly
earnings, to enable comparison with previous analyses using New Zealand tax data. I
then estimate the determinants of annual changes in hourly earnings using OLS and
quantile regressions. Differences in human capital are associated with differences in
the rate of earnings growth. The results were broadly similar across the sub-periods
1997-2001 and 2001-2004.


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