Qualifications play second fiddle

Discrimination based on race and gender remains a "major factor" in the job market, according to a study by University of Otago economists.

Non-Europeans generally have more trouble getting work and are paid less than Pakeha in the same occupations and with the same qualifications .

The study, by senior lecturer Robert Alexander, lecturer Murat Genc and senior lecturer Mohammad Jaforullah, of Otago's economics department, is one of the first university studies based on new data contained in Statistics New Zealand income surveys.

The income surveys were first undertaken in 1997. The Otago study, undertaken over the past 18 months, was based on income surveys for the three June quarters in 1997, 1998 and 1999.

Over the past three years, Maori received wages which were 9 to 14 per cent lower hourly than for non-Maori, Dr Alexander said.

Pacific Islanders were even worse off, losing out between 14 and 21 per cent, while other non-European ethnic groups were paid between 19 and 21 per cent less an hour.

The gender gap was also "alive and well" in New Zealand, females earning 18 to 19 per cent less than comparable males.

Taking into account factors such as age, household type, marital status, qualifications, occupational class and location, the researchers found evidence of "significant ethnic and gender wage differentials."

"If you earned between 9 and 21 per cent less than another individual who was comparable to you in all respects but ethnicity, would that seem fair to you?" Dr Alexander said.

"The reasons for the continued existence of wage discrimination are beyond the realms of economics, which would claim such discrimination is irrational."

He also took issue with findings in a widely publicised study by a Department of Labour labour market policy group member, Simon Chapple, who had claimed that ethnicity alone explained little of the variation in wages between Maori and Pakeha.

Dr Alexander said the Otago study clearly showed there were indeed significant employment "gaps" between Maori and Pakeha, despite claims to the contrary in Mr Chapple's paper on "Maori Socio-Economic Disparity."

The statistics in Mr Chapple's paper were "seriously flawed" and some of the accompanying sociological comment was highly speculative or even outrageous.

Dr Alexander said the discrimination pinpointed by the Otago study would not be removed completely by improving work qualifications, but such qualifications did boost hourly pay rates.

School credentials increased payments by 17 to 25 per cent, tertiary education other than at university meant a boost of 28 to 36 per cent and university success generated between 57 and 68 per cent more money.

"While securing qualifications helps the pay packet, they don't alter the overriding fact that discrimination remains a major factor" in employment, he said.

Dr Alexander said the Otago researchers recognised the "controversial nature" of their results and planned to repeat their study with the latest Statistics New Zealand survey data before publishing their final findings.

- NZPA