Parental Income and the Choice of Participation in University, Polytechnic or Employment at Age Eighteen: A Longitudinal Study

This paper examines the link between parental income during adolescent years and higher education choices of the offspring at age 18. This study is the first to use a recent longitudinal data set from New Zealand (Christchurch Health and Development Surveys, CHDS), in the higher education context. The paper examines the impact of family income and other resources throughout adolescent years on later decisions to participate in higher education and the choice of type of tertiary education at age 18. A binary choice model of participation in education, and a multinomial choice model of the broader set of choices faced at age 18, of employment, university, or polytechnic participation are estimated. Among the features of the study are that it incorporates a number of variables, from birth to age 18, which allow us to control further than most earlier studies for ability heterogeneity, academic performance in secondary school, in addition to parental resources (e.g., childhood IQ, nationally comparable high school academic performance, peer effects, family size and family financial information over time). The results highlight useful features of intergenerational participation in higher education, and the effect of parental income on university education, in particular.Parental Income, Demand for Higher Education, Longitudinal

Education and Maori Relative Income Levels over Time: The Mediating Effect of Occupation, Industry, Hours of Work and Locality

This paper examines ethnic differences in the relationship between educational attainment and income in New Zealand over the period 1986 to 1996. In particular, it uses a 50% sample from the Census in each of those years to determine how far ethnic differences in income are explained by educational qualifications, access to higher paying occupations and industries, hours of work, locality of residence and marital status. The study is restricted to all those employed. Over the period under study, the gap between Maori and European incomes increased. This reflects Maori lower educational qualifications and concentration in occupations and industries that experienced low employment growth at a time when income returns to educational qualifications increased. Those with higher educational qualifications also experienced growth in hours of work, reflecting increasing demand for skills. Nevertheless income returns to qualifications were higher for Maori than for non-Maori in both years. This reflects the particular and increasing disadvantage faced by Maori with no qualifications compared to Europeans with no qualifications and the fact that the gap between mean incomes of Maori and Europeans reduces as qualifications rise. Maori participation in higher education increased strongly over the period. Controlling for a wide range of characteristics, Maori residing in rural areas are more disadvantaged than any other group. Maori are also less likely to be married. Not being married is associated with lower incomes for males. By 1996 there was little difference among ethnic groups in access to managerial and professional occupations for people with higher educational qualifications. Overall, most of the ethnic gap in incomes can be explained by differences in the characteristics of the groups, rather than by differences in the way in which these characteristics are translated into income.Ethnic income disparities; rates of return to education

Secondary and Tertiary Education Attainment and Income Levels for Maori and Non-Maori Over Time

This study examines how relative income levels, and in particular the income returns to post-compulsory and higher education (education beyond age 16) for Maori compare to Non- Maori, and how they have changed over the 1986-1996 decade. The analysis focussing on the Maori population extends earlier research for the overall New Zealand population (Maani, 1994, 1996a, 1996b, 1997, 1999). The study utilises individual level data and 20% samples of the 1986 and 1996 Censuses of the Population. Statistical sample characteristics, restricted and unrestricted 'earnings function' estimates across ethnicity, and stability tests over time indicate that the Maori population was at a disadvantage in both 1986 and 1996 in terms of educational attainment, employment and income levels. While the returns to post-compulsory education were significant compared to no qualifications, the participation of Maori in post-compulsory education after a decade is still significantly less than the Non-Maori group, as more than 60% of Maori males and females in 1996 still had no school qualifications. The returns to education are greater for Maori compared to Non-Maori, despite lower attainment levels. This is primarily since Maori with no qualifications are relatively more disadvantaged with respect to Non-Maori than are Maori with qualifications. Given the link between educational attainment and income levels, the study shows that in 1996 Maori with 'no school qualification' were at a greater relative disadvantage than they were in 1986, with the income gap having narrowed at the tertiary education level, in particular for women.

School Leaving, Labour Supply and Tertiary Education Choices of Young Adults: An Economic Analysis Utilising the 1977-1995 Christchurch Health and Development Surveys

Utilising evidence from a longitudinal data set of young adults in New Zealand, this study examines the determinants of school leaving and labour supply behaviour of young adults at ages 16 and 18. The data set employed (the Christchurch Health and Development Survey) includes a number of variables, from birth to age 18, not commonly available in economic data sets. The analysis uses binary choice models to examine the effect of ability factors and household economic constraints on the choice to remain at secondary school beyond post-compulsory levels at age 16. The study further uses binary and multinomial choice models to examine the determinants of participation in tertiary education, as opposed to engaging in labour supply, or unemployment at age 18. The study finally examines the determinants of the type of tertiary institution attended. The results show that participation in tertiary education depends on a combination of family resources, ability and prior achievement. Interestingly the results show girls' (but not boys) school leaving at age 16 is positively and significantly associated with the proportion of family income received from benefits, and with the mother's educational qualifications.

Inequality and Health: Is Housing Crowding the Link?

In this study we extend the literature (e.g. Deaton, 2002a; Kennedy and Kawachi, 1996; Wilkinson, 1996) by proposing a new mechanism through which income inequality can influence health. We argue that increased income inequality induces household crowding, which in turn leads to increased rates of infectious diseases. We use data from New Zealand that links hospital discharge rates with community-level characteristics to explore this hypothesis. Our results provide support for a differential effect of income inequality and housing crowding on rates of hospital admissions for infectious diseases among children. Importantly, we find that genetic and non-communicable diseases do not show these joint crowding and inequality effects. The effect of housing on communicable diseases provides a biological foundation for an income inequality gradient.Housing crowding, child health outcomes, income inequality

Immigrants' Location Choices, Geographic Concentration, and Employment in New Zealand

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