Seminar for Statistics New Zealand Bob Stephens Senior Research
Associate, Institute of Policy Studies, School of Government New
Zealand Poverty Measurement Project Member, Advisory Group,
Solutions to Child Poverty, Office of the Childrens Commissioner
Slide 2 Lecture Overview Media: 20% children poor, but few 65+
Defining Poverty Why have a measure of poverty? NZPMP and benefit
cuts Look at the concepts of poverty, data sources and analysis
Alternative ways of measuring poverty/ hardship Use NZ data (NZPMP
and MSD) and analysis to show results Slide 3 Definitions, Quotes
NZPMP A lack of access to sufficient economic and social resources
that would allow a minimum adequate standard of living Perry (MSD)
Exclusion from the minimal acceptable way of life in ones own
society because of inadequate resources Children living in poverty
are those who experience deprivation of income and material
resources to develop and thrive, leaving them unable to enjoy their
rights, achieve their full potential and participate as full and
equal members of New Zealand society. (EAG?) Counting the poor is
an exercise in the art of the possible. For deciding who is poor,
prayers are more relevant than calculations because poverty, like
beauty, lies in the eyes of the beholder (Orshansky 1958) The
afflictions of poverty not addressed by moving over the threshold,
and some under threshold are resilient Slide 4 The Need for a
Poverty Measure Social commitment to alleviate, provide long-term
solution: Monitor/evaluate impact of policy changes on standards of
living of poor New Right: poverty as an externality Provide basis
for determining adequacy of benefits Determine relative incidence
of poverty among social groups: -> targeting, tailoring Mix of
cash and in-kind benefits, or adequate wages Determine causes of
poverty to develop long term policies to reduce incidence, severity
and persistence Calculate costs to government of policies to
alleviate and eradicate poverty Slide 5 New Zealand Poverty
Measurement Project Charles Waldegrave, Paul Frater, Bob Stephens
Impact of the 1991 Benefit Cuts, market rents for state housing on
living standards 12% cut in average social security benefit, larger
cut Inter-generational transference: Are children who grow up in
poor families more likely to be poor themselves when adults?
Limited NZ data: Dunedin and Christchurch cohort studies have poor
income data Limited inter-generational mobility about children
remain in same income bracket as parents Less mobility for parents
with low education, teenage parenting, unemployment -> poorer
child performance Slide 27 Deprivation Indicators EU data, with NZ
added (MSD) 9 item EU index (not by choice: lack phone, colour TV,
washing machine, car, meal with meat, week holiday, pay
mortgage/rent/utilities, cover unexpected costs $NZ1500) Enforced
lack 3+ items Child deprivation exceeds aged 65+ and for total
population NZ material hardship high for children, low for aged 65+
New EU countries have high rates of deprivation Slide 28
Deprivation Rates: % 3+ enforced lacks, using 9 item EU index
Source: B. Perry, MSD Children 0-17Aged 65+Total Population New
Zealand18313 UK15510 Ireland14411 Germany137 Sweden736
Netherlands636 Spain911 Italy1814 Czech201720 Slide 29 Poverty
Incidence Before/After Housing Costs (%) PeopleAdults 16-64 Adults
65+ Children Before Housing Costs 19.715.040.222.4 After Housing
Costs 21.318.825.326.2 Slide 30 Poverty before/after Housing Costs
tenure type Owned Mortgage Owned No mortgage Rent HNZC Rent Private
Before Housing Costs 9.223.858.125.1 After Housing Costs
14.215.254.633.8 Slide 31 Slide 32
