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Economic Standard of Living:

Population with low living standards

Definition

The proportion of the population with a "somewhat restricted", "restricted" and "very restricted" standard of living: Levels 1–3 of the Economic Living Standard Index (ELSI).

Relevance

ELSI is an indicator of how people are living in terms of their possessions and activities and how they get by financially. Having a low living standard limits a person’s ability to participate in the wider society, curtails their quality of life, and can have negative long-term consequences across a wide range of social and economic outcomes.

Current level

In 2000, 4 percent of the total population had "very restricted" living standards, 5 percent had "restricted" living standards and a further 11 percent had "somewhat restricted" living standards. In total, 20 percent of the population had living standards in the bottom three levels of the ELSI scale.

Figure EC4.1 Proportion of the population with lower living standards, 2000

Graph showing proportion of the population with lower living standards, 2000.

Source: Krishnan et al (2002) p40

Population group differences

Groups with a higher-than-average prevalence of low living standards include sole-parent families (51 percent), families who rely on income-tested benefits (57 percent), families with dependent children (particularly larger families), Māori and Pacific peoples (39 percent and 42 percent, respectively), and those living in rented dwellings. Dependent children are more at risk of low living standards than the population average. The probability of having low living standards declines with age, except for a slight increase during peak child-rearing years.

Table EC4.1 Proportion of population and economic families with low living standards (ELSI Levels 1–3), 2000

  Percent
Total population 20
Males 18
Females 21
Dependent children (under 18 years) 29
18–24 years I6
25–44 years 19
45–64 years 16
65 years and over 7
   
Total economic families 18
By number of children and family type  
With one dependent child 25
With two dependent children 24
With three or more dependent children 35
Sole-parent family 51
Two-parent family 18
By ethnic group  
With any Māori members 39
With any Pacific members 42
With any European/Pākehā members 15
With any "Other" ethnic group members 22
By main source of income  
New Zealand Superannuation 7
Income-tested benefits 57
Market income 14
By housing tenure  
Rented – Housing New Zealand 63
Rented – Private 33
Rented – Local Authority 30
Owned with mortgage 22
Owned without mortgage 8

Source: Krishnan et al (2002)