Appendix 2
Technical details
People
Limitations of data: The family data presented in this report relates to families within households. In official statistics, a family is defined as two or more people living in the same household who comprise either a couple, with or without children, or one parent and their children. The children do not have partners or children of their own living in the same household. People who were temporarily away from home on census night are included as part of the family. There is no data available on parents and children who live in different households.
Data sources: Population size and growth: Statistics New Zealand, National Population Estimates Information Release; Census of Population and Dwellings; National Population Projections, 2004(base), mid-range Series 5, assuming medium fertility, medium mortality, long-term annual net migration gain of 10,000, Series 6 (low fertility), Series 6 (high migration); External Migration Information Release, INFOS series VTBA.SJT (natural increase) and EMIQ.S3E (net migration).
Fertility: Statistics New Zealand (2005d): Population Monitor, Births, Additional Tables (Age-specific Fertility Rates by Single Year of Age for Māori, non-Māori, Total, Ethnic groups); international comparison from Demographic Trends 2004, Table 2.12, latest years available.
Geographic and ethnic distribution of the population: Statistics New Zealand, 2001 Census of Population and Dwellings; Ethnic Population Projections, 2004(base).
Age and sex structure of the population: Statistics New Zealand, National Population Estimates by single year of age, mean for the year ended December, National Population Estimates Information Release.
Household structure: Statistics New Zealand, 1996 Census: Families and Households, Table 1; 2001 Census: National Summary, Table 36.
Families with dependent children: Table P3: Families with dependent children, by family type, 1976 to 2001; Statistics New Zealand, 1976, 1981, 1986, unpublished census data; 1991 Census: New Zealanders at Home, Tables 16, 17; 1996 Census: Families and Households, Tables 16, 21, 26; 2001 Census: Families and Households, Tables 13 and 24.
People with disability: Statistics New Zealand (2001a) Disability Counts. Tables 1.01a, 1.02a. Ministry of Health (2004c) Living with Disability in New Zealand, Tables 4.29 and 5.25.
Same-sex couples: Statistics New Zealand 2001 Census: Families and Households, Tables 7, 11.
Health
H1 Health expectancy
Definition/formulae: The total number of years a newborn can expect to live without any self-reported functional limitation requiring the assistance of another person or a complex assistive device.
Note:
- 2001 estimates have been revised following the official release of 2000-2002 complete life tables in March 2004.
- Independent life expectancy estimates for 1996 have been revised slightly, reflecting changes to the smoothing method required for the 2001 data and the release of 2000-2002 complete life tables.
- Māori and non-Māori rates are based on estimates for ages 0-85 years because of the small number of Māori aged over 85, and are referred to here as "partial" independent life expectancies.
Limitations of data: The ability to monitor health expectancy on a regular basis depends on the availability of information about disability and levels of disability.
This measure of health expectancy (titled independent life expectancy in the 2003 edition of the social report) has inherent limitations as a population health indicator. An indicator that included all levels of disability - not just a single dependency threshold - would provide a more precise measure of health (ie a health-adjusted life expectancy). The social preferences (disability weights) needed to construct such an indicator are still under development in New Zealand .
Data source: Ministry of Health, revised data.
H2 Life expectancy
Definition/formulae: The expected number of years a person would live if they were subject throughout their lives to the current age-specific mortality rates.
Note: Ethnic-specific estimates for the period 1980-1982 to 1995-1997 have been adjusted for undercounting in the ethnic mortality statistics using census ethnic definitions and were revised after the official release of the 2000-2002 complete life tables in March 2004. The figures differ from those published by Statistics New Zealand for the same period and are not comparable with earlier estimates.
The analysis associating life expectancy with levels of deprivation is based on NZDep96, a small area index of deprivation based on a principal-component analysis of nine socio-economic variables from the 1996 Census. The index has been converted to a scale ranging from 1 to 10, where 1 represents the least deprived 10 percent of small areas, and 10 represents the most deprived 10 percent. The small areas are about the size of a census meshblock and have populations of at least 100 people.
Limitations of data: Available annually from abridged life tables for the total population only. Official Māori/non-Māori data is only available five-yearly from complete life tables based on a three-year period around census years.
Data sources: Statistics New Zealand (2005b) New Zealand Abridged Life Table: 2002-2004 abridged life tables: http://www.stats.govt.nz/tables/abridged-life-table, Statistics New Zealand (2004e) New Zealand Life Tables: 2000-2002, Table 1. Statistics New Zealand (2005d) Population Monitor, Deaths December 2004 (www.stats.nz).
Ministry of Health (ethnic-specific data for 1985-1987, 1990-1992). Tobias and Cheung (2003) Monitoring Health Inequalities: Life Expectancy and Small Area Deprivation in New Zealand, Table 3. OECD (2004c) OECD Health Data 2004, Table 1.
Ministry of Health (1999a) Our Health, Our Future: Hauora Pakari, Koiora Roa, The Health of New Zealanders 1999, Chapter 2.
H3 Suicide
Definition/formulae: The age-standardised rate of suicide deaths per 100,000 population.
Age-standardised to Segi’s world population.
Note: The figures for 2001 and 2002 are provisional and subject to revision.
Limitations of data: Because suicide is a relatively rare event in statistical terms, rates of suicide can vary markedly from year to year. Any interpretation of trends requires an examination of rates over several years. Deaths by suicide are subject to a coroner’s inquiry and can only be officially deemed suicide once an inquest is complete. This means there can be a considerable delay in the publication of the final statistics.
Data on the rates of suicide for geographical regions and cities may be of little value for reporting comparisons because of the low numbers, and hence highly variable suicide rates. For example, where populations are small, the rate of suicide can be greatly inflated by one or two deaths.
Data on attempted suicide is only available for those admitted to hospital as inpatients or day patients for self-inflicted injury. Those cared for in hospital but not admitted and those cared for by primary or community care services are not reported. Therefore, the actual rate of attempted suicide is likely to be much higher than reported in official statistics.
Comparability over time is affected by a change in the population concept in 1991 (from de facto to resident), and the change in the ethnicity classification in 1995. Ethnic-specific mortality data is also subject to some uncertainty due to the differences in collection across different providers.
A comparison of international trends in suicide is problematic due to the differences in the methods used to classify suicide. The New Zealand age-standardised rate in the international comparison data has been calculated in a manner consistent with the international figures available, and may differ slightly from the rates presented elsewhere (Ministry of Health, 2005a, p13).
Data sources: Ministry of Health, New Zealand Health Information Service (unpublished tables).
Ministry of Health (2005b) Suicide Facts: Provisional 2002 Statistics (all ages).
Beautrais (2000) Restricting Access to Means of Suicide in New Zealand: A Report Prepared for the Ministry of Health on Methods of Suicide in New Zealand . World Health Organisation (2004) [May 2005].
H4 Prevalence of cigarette smoking
Definition/formulae: The proportion of the population aged 15 and over who ever smoke any ready-made cigarettes or roll-your-own tobacco cigarettes. Information on smoking prevalence was collected from quarterly surveys conducted by ACNielson Ltd and reported by the Ministry of Health.
Ethnic rates are age-standardised using the WHO world population.
Limitations of data: The international comparison is affected by differences in the collection and classification of the data. The classification of ethnicity information changed from 1997 onwards. Therefore, ethnic-specific data before and after 1997 may not be comparable.
Data sources: Ministry of Health (2003b) Tobacco Facts 2003.
OECD (2003b) OECD Health Data 2003, Frequently asked data, Table 19: Tobacco consumption: Percentage of population who are daily smokers, [16 June 2004].
H5 Obesity
Definition/formulae: Obesity is defined as the accumulation of excess body fat to the extent that health is adversely affected (WHO 2000). It is measured using Body Mass Index (BMI) which is calculated by dividing weight (in kilograms) by height (in metres) squared. Adults with a BMI greater than 30 kg/m2 are classified as obese. In the 1997 National Nutrition Survey and the 2002/2003 New Zealand Health Survey, the cut-off for Māori and Pacific peoples was set slightly higher, at 32 kg/m2. For children, the measure is the proportion of 5-14 year olds whose BMI (weight/height2) met the international definition of obesity established by Cole et al (2000). The definition adapts the widely used cut-off point for adults (30kg/m2) to produce age-and sex-specific cut-offs for children and youth aged 2-18 years.
Information on obesity is based on the 2002/2003 New Zealand Health Survey, the 1997 National Nutrition survey, the 2002 National Children’s Nutrition Survey, the 1989-1990 Life in New Zealand (LINZ) Study, and the 1977 National Diet Survey. Although there was some variation in survey design and response rates, as well as in height and weight measurement methods, these surveys are considered to be reasonably comparable.
Limitations of data: The cut-off level is arbitrary and does not necessarily correspond to levels of health risk. There is some debate about whether a separate cut-off for Māori and Pacific peoples is warranted. The 1989-1990 data for Māori should be viewed with caution as the number of Māori in the survey was small.
Data sources: Ministry of Health (2004a) A Portrait of Health: Key Results of the 2002/2003 New Zealand Health Survey.
Ministry of Health (2004b) Tracking the Obesity Epidemic: New Zealand 1977-2003.
Ministry of Health (2002a) An Indication of New Zealanders’ Health.
Ministry of Health (1999d) NZ Food: NZ People.
Ministry of Health (2003c) NZ Food, NZ Children: Key results of the 2002 National Children’s Nutrition Survey.
OECD (2004c) OECD Health Data 2004, 3rd edition, released 24 September 2004.
Knowledge and Skills
K1 Participation in early childhood education
Definition/formulae: The number of children aged 3 and 4 years enrolled in early childhood education (ECE) programmes as a proportion of the estimated population aged 3 and 4 years. ECE programmes include: licensed ECE services (kindergartens, playcentres, education and care services, home-based services, casual education and care (no regular roll), correspondence school and te kōhanga reo); and licence-exempt ECE services (early childhood development funded playgroups, Pacific peoples early childhood groups, and playcentres); and licence-exempt kōhanga reo.
Limitations of data: Rates of participation are only "apparent" because children may be enrolled in more than one ECE centre. The rates may therefore be inflated. The measure does not provide information on the length of participation or the quality of the programmes, both of which are relevant to positive educational outcomes.
Data sources: Ministry of Education, Early Childhood Education Statistics, published on website www.minedu.govt.nz.
Ministry of Education (various years) Education Statistics of New Zealand, Education Statistics News Sheet, v 10, no 1, March 2001; unpublished tables.
K2 School leavers with higher qualifications
Definition/formulae: The number of students leaving school with qualifications higher than National Certificate of Educational Attainment (NCEA) Level 1, as a proportion of the total number of school leavers during the year. Higher qualifications include: Sixth Form Certificate in at least one subject (irrespective of grade awarded); National Certificate Level 2 (12 or more credits at Level 2 or above from 1998-2001; 14 credits or above from 2002); Higher School Certificate (or 12-39 credits at Level 3 or above); Entrance Qualification (or 40 or more credits at Level 3 or above from 1998-2001; 42 credits or above from 2002 ); University Bursary, A or B grade (or National Certificate Level 3); University Scholarship (up to 1989).
Note: The definition of this indicator has been changed to reflect the introduction of the National Certificate of Educational Attainment in 2002. In 2003, Sixth Form Certificate was being phased out and was offered for the last time in 2004.
Limitations of data: Policy changes relating to qualifications affect comparability over time. A full description of changes to qualifications over the period 1970-2001 is available at this webpage: http://www.nzqa.govt.nz/qualifications/ssq/changes.html
From 2002, the school leaver data collection was changed as a result of the introduction of NCEA in 2002. School leaver data is now based on the concept of achievement, where students are required to both participate and achieve credits in order to be counted as having a qualification. Before 2002, school leaver data was based on the concept of participation. For example, if a student sat School Certificate, they were deemed to have School Certificate regardless of their grade. This change means there is discontinuity with the data for earlier years.
The available data on school leavers’ highest qualifications does not allow a breakdown by the number of subjects passed or the grades achieved.
Data source: Ministry of Education (various years) Education Statistics of New Zealand .
Ministry of Education website, http://www.minedu.govt.nz: School Leaver Statistics.
K3 Educational attainment of the adult population
Definition/formulae: The proportion of adults aged 25-64 years with educational attainment of at least upper secondary school level, defined in the International Standard Classification of Education (ISCED 97) as Level 3 and above.
ISCED 3 includes: local polytechnic certificate or diploma, trade certificate or advanced trade certificate, University Bursary, Scholarship, Higher School Certificate, Sixth Form Certificate, University Entrance in one or more subjects, School Certificate in one or more subjects, other school qualification.
ISCED 4 includes: technician’s certificate, New Zealand Certificate or diploma.
ISCED 5B includes: university certificate or diploma, teacher’s certificate or diploma, nursing certificate or diploma, other tertiary qualification.
ISCED 5A/6 includes: post-graduate degree, certificate or diploma, bachelor’s degree.
Limitations of data: There are substantial differences in the typical duration of ISCED 3 programmes between countries, ranging from two to five years of secondary schooling.
Statistical weights used to rate sample data up to population estimates are updated every five years following each population census, requiring a revision of historical data. In mid-2004, the Household Labour Force Survey (HLFS) was revised back to the start of the survey (March 1986). As a result, some figures published in this report may not match figures published in earlier editions of the social report.
Data sources: Statistics New Zealand, Household Labour Force Survey.
OECD (2004d) Education at a Glance: OECD Indicators, 2004 edition, Tables A2.2, A3.3.
K4 Adult literacy skills in English
Definition/formulae: Respondents in the International Adult Literacy Survey were asked to carry out various everyday tasks. "Prose literacy" refers to the knowledge and skills required to use information from texts, such as editorials, news stories, poems and fiction; "document literacy" refers to the knowledge and skills required to locate and use information contained in various formats such as job applications, payroll forms, transportation timetables, maps, tables and graphics; and "quantitative literacy" refers to the knowledge and skills required to apply arithmetic operations such as balancing a cheque book, completing an order form or determining the amount of interest on a loan. The achievement attained on each of the literacy domains is grouped into one of five "skill levels". Level 1 represents the lowest ability range and level 5 the highest. Level 3 is considered a suitable minimum for coping with the demands of everyday life and work in a complex, advanced society. It denotes roughly the skill level required for successful secondary school completion and university entry. Like higher levels, it requires the ability to integrate several sources of information and solve more complex problems.
Limitations of data: The first international adult literacy survey was conducted in 1994-1995; the New Zealand survey took place in 1996.
Data sources: Ministry of Education (2001b) More Than Words: The New Zealand Adult Literacy Strategy.
OECD (2000a) Literacy in the Information Age: Final Report of the Adult Literacy Survey, p137. [May 2005].
K5 Participation in tertiary education
Definition/formulae: Participation in tertiary education is calculated by: the number of students aged 15 and over enrolled with a tertiary education provider (see below) at 31 July in formal qualifications (or programmes of study) of greater than 0.03 Equivalent Full-time Tertiary Study (EFTS). The data excludes all non-formal learning, on-job industry training and Private Training Establishments which neither received tuition subsidies nor were approved for student loans and allowances.
Modern Apprenticeship students who are studying courses that fit into the above definition are included in the statistics (typically doing block courses at a polytechnic). If their learning is totally on the job they will not be included.
Community education courses are excluded from the statistics.
Public tertiary education institutions include: universities, polytechnics, colleges of education, and wānanga. Private tertiary education consists of: private providers receiving a tuition subsidy, private providers with qualifications approved for loans and allowances, providers receiving a Ministry of Education grant (OTEPs), and other private providers registered with the New Zealand Qualifications Authority.
The Māori and non-Māori total tertiary participation rates in this section have been age-standardised to the estimated total resident population aged 15 and over, as at 30 June 2004.
Limitations of data: Changes in the number of institutions, the status of institutions, and the types of courses offered affect comparisons over time.
Data sources: Ministry of Education website, http://www.minedu.govt.nz: Tertiary Statistics.
Ministry of Education (2002a) Participation in Tertiary Education, August 2002.
Education Statistics of New Zealand for 2001.
OECD (2004d) Education at a Glance, 2004 edition, Table C1.2.
Paid Work
PW1 Unemployment
Definition/formulae: The proportion of the labour force (aged 15 and over) that is unemployed. The labour force is the sum of those defined as employed and those defined as unemployed. Hence the unemployment rate is defined as unemployed/(employed and unemployed). The unemployed are defined in the Household Labour Force Survey as those who are without a paid job (or unpaid work in a relative’s business) and who have actively sought work in the four weeks before the survey and are available to take work. "Actively seeking" includes any actions such as contacting an employer, asking friends and relatives and contacting an employment agency or Work and Income but excludes those who have only checked newspaper advertisements.
Standardised unemployment rates used for international comparison are seasonally adjusted rates.
Limitations of data: Data is based on a sample survey and is therefore subject to sampling error. The definition of the unemployed excludes some people who regard themselves as unemployed, including the "discouraged unemployed" - those not meeting the "actively seeking work" criterion. This group is classified in the "Not in the Labour Force" category. The unemployment rate also excludes those who have part-time employment but are seeking to work more hours.
Data sources: Statistics New Zealand, Household Labour Force Survey.
OECD (2004b) OECD Employment Outlook, 2004, Statistical Annex, Table A p293, Table G, p315.
OECD (2005b) Main Economic Indicators, May 2005, p16: Standardised Unemployment Rates. [May 2005].
The Household Labour Force Survey (HLFS) figures were rebased using the latest census information in the June 2004 quarter. The data for all quarters was revised and therefore there may be some differences between the numbers in this report and those published in earlier editions.
PW2 Employment
Definition/formulae: The proportion of the population aged 15-64 that is employed for at least one hour per week. The employed are those who worked for pay or profit for one hour or more in the week before the survey or who worked unpaid in a relative’s business or who have a job but did not work that week because of leave, sickness or industrial disputes. The definition used here relates to the population aged 15-64, rather than to those aged 15 and over, because otherwise results are skewed by differences in the proportions of the sub-populations over 65, particularly when comparing males with females and comparing different ethnic groups.
Limitations of data: As above, data is subject to sampling error. The definition of employment includes those working one hour or more per week, so will include some people who are likely to regard their status as closer to unemployment than to employment. For example, people on the unemployment benefit and searching for work but working a few hours per week will be counted as employed.
Data sources: Statistics New Zealand, Household Labour Force Survey.
OECD (2004b) OECD Employment Outlook, 2004, Statistical Annex, Table B, pp294-296.
The Household Labour Force Survey (HLFS) figures were rebased using the latest census information in the June 2004 quarter. The data for all quarters was revised and therefore there may be some differences between the numbers in this report and those published in earlier editions.
PW3 Median hourly earnings
Definition/formulae: Median hourly earnings for employees earning income from wage and salary jobs as measured by the New Zealand Income Survey, an annual supplement to the Household Labour Force Survey.
Limitations of data: The final data set consists of approximately 28,000 valid person records including 4,000 imputed person records. Hourly earnings relate to the number of hours usually worked and the usual income rather than the number of hours actually worked and the actual income. Proxy interviewing may be used to collect data on income under certain circumstances. Estimates from sample surveys are subject to error.
Data sources: Statistics New Zealand, New Zealand Income Survey, Hot Off the Press, June 1997 to June 2004 (revised), June 2004, Table 10, and unpublished data derived by the Ministry of Social Development.
PW4 Workplace injury claims
Definition/formulae: The number of work-related accident claims reported to the ACC per 1,000 full-time equivalent employees (one part-time employee = 0.5 full-time employee).
Full-time equivalent employee data is as estimated by Statistics New Zealand's Household Labour Force Survey.
Limitations of data: The data does not include workplace accidents where no claim was made to ACC. In some cases there are also delays between the occurrence of the accident and the claim being reported to the ACC. To see the effect of this, there were 237,000 injuries reported for the 2002 calendar year by March 2003, and 277,200 by March 2004, an increase of 17 percent.
Information on workplace injuries for 2003 is based on a new set of indicators developed by Statistics New Zealand . Comparable figures are available for 2001 and 2002 but information from these years is not directly comparable with previous figures on workplace injuries.
At the time of printing the data series this indicator was derived from is under review by Statistics New Zealand . We understand that this review may result in some revision to the 2003 figures cited here.
Data sources: Statistics New Zealand (2004c) Injury Statistics - Work-related claims, 2003, Information Release.
Statistics New Zealand (2004d) Injury Statistics 2003 - Claims for Work-Related Injuries (2003) - Report.
Statistics New Zealand (2003a) Injury Statistics 2001/2002: Work-related injuries, Statistics New Zealand : Wellington.
PW5 Satisfaction with work-life balance
Definition/formulae: The proportion of employed people who are "satisfied" or "very satisfied" with their work-life balance according to the Quality of Life in New Zealand's Largest Cities Survey 2004.
Limitations of data: Subjective measures of wellbeing reflect people’s perceptions of their own situation, which may differ from their objective status.
Data source: Auckland City Council et al, (2005) Quality of Life in New Zealand's Largest Cities. The survey was commissioned by 12 of New Zealand's cities and districts, in partnership with the Ministry of Social Development, to monitor trends in wellbeing. The total (national) sample size in the 2004 survey was 7,800, which has a maximum margin of error of +/- 1.1 percent at the 95 percent confidence interval. Interviews were conducted to meet gender, ethnicity, age and ward/region quotas to ensure the sample was representative of the New Zealand population as a whole.
Economic Standard of Living
EC1 Market income per person
Definition/formulae: Real Gross National Disposable Income (RGNDI) measures the real purchasing power of the net income of New Zealand residents from both domestic and overseas sources after taking account of income resulting from international transfers. GNDI is GNI (previously called GNP) plus net international transfers. Real GDP per person (as used in the OECD comparisons) is real income produced inside the New Zealand national boundary, excluding the international transfers included in GNDI.
Derivation of RGNDI: In the published tables, RGNDI is calculated as follows: constant price gross domestic product (production-based measure) plus constant price trading gain/loss plus constant price total net income and transfers. Constant price trading gain/loss is defined as current price exports divided by the imports implicit price index less constant price exports. Constant price total net income and transfers equals investment income credits less investment income debits plus transfers credits less transfers debits, all divided by the imports implicit price index.
Limitations of data: Major limitations to the use of RGNDI as an indicator of wellbeing include its failure to include non-marketed (and, therefore, non-priced) activities (barring the exception of imputed rentals on owner-occupied dwellings). RGNDI provides no information on income distribution. Finally, evidence suggests monetary measures have a very weak cross-sectional and limited time series correlation with self-assessed measures of wellbeing. Note that use of real GDP for OECD comparisons may over-state New Zealand's relative position because of New Zealand's growing and high per capita net external debt.
Data sources: Statistics New Zealand, Real GNDI per capita, INFOS series SNCA.S6RB06NZ.
OECD (2005a) Annual National Accounts, Main Aggregates, Volume 1, 1962-2003, Comparative Tables B.
Statistics New Zealand (2001c) Measuring Unpaid Work in New Zealand 1999 Table 1 p15 Table 4 p17.
EC2 Income inequality
Definition/formulae: The ratio of the 80th percentile of equivalised disposable household income to the 20th percentile of equivalised disposable household income. This indicator takes into account household size and composition. For international comparison purposes we have compared GINI co-efficients.
Adjustment for family size was made by means of a per capita equivalisation process based on the 1988 Revised Jensen Equivalence Scale.
Limitations of data: International comparisons have been made with data from years around 2000.
Data sources: Household Economic Survey. Access to the data used in this study was provided by Statistics New Zealand under conditions designed to give effect to the confidentiality provisions of the Statistics Act 1975. The results presented in this study are the work of the Ministry of Social Policy/Ministry of Social Development. Forster M and d’Ercole M M (2005) Income Distribution and Poverty in OECD Countries in the Second Half of the 1990s, OECD Social, Employment and Migration Working Papers No. 22.
EC3 Population with low incomes
Definition/formulae: The measures have been constructed using economic family units as the base unit of analysis. An economic family is operationally defined as:
- financially independent single adult (not married nor living as married, not caring for dependent children)
- sole-parent family - ie financially independent single adult (not married nor living as married) caring for one or more dependent children
- couple (married or living as married, not caring for dependent children)
- two-parent family - ie couple (married or living as married) caring for one or more dependent children.
All young adults are considered financially independent at 18 years of age; 16 and 17 year olds are also considered financially independent if they are receiving a benefit in their own right or if they are employed for 30 hours or more per week.
Conceptually, an economic family is a group of co-resident people whose financial affairs are common or have been merged to the extent the people are substantially interdependent (with an individual not part of such a group being considered to constitute an economic family in its minimal form).
Housing costs have been apportioned to economic family units. Account was taken of the housing costs of the economic family unit by subtracting its housing cost from its after-tax income. The resulting amounts were inflation-adjusted using the CPI for all groups excluding housing.
The adjustment for family size was made by means of a per capita equivalisation process based on the 1988 Revised Jensen Equivalence Scale. The resulting amount - Housing-adjusted Equivalised Disposable Income (HEDY) - can be regarded as an income-based proxy measure of standard of living. The HEDY is the metric on which the low thresholds are specified.
Changes from 1988 to 2004 have been tracked in terms of the proportion of economic families with HEDY values below 40 percent, 50 percent and 60 percent of the median HEDY in 1998. This definition means the measures are based on constant-value benchmarks. The three measures are referred to as the 40 percent line, the 50 percent line and the 60 percent line. For the purpose of this analysis the self-employed have been included.
Note: While technical analysis done to date indicates that the measurement approach is well-grounded and robust, future work may point to the use of other thresholds as more informative for social monitoring.
The methodology used to calculate the figures used in the international comparison section follows that used by the OECD: the income concept is equivalised household disposable income; the equivalence scale is the square root scale (ie equivalence scale elasticity = 0.5); equivalent household income is attributed to all individuals in the household; individuals are ranked by their attributed equivalent disposable income to obtain the median for that year; the thresholds are set at 60 percent of this (contemporary) median.
Limitations of data: The HEDY metric is an imperfect indicator of living standards, which are influenced by factors other than income and housing cost. People with the same income level can have greatly different standards of living as a result of their lifecycle stage (youth, middle age, older people), their ownership of assets, the extent to which they receive assistance from others, and the extent to which they have atypical expenditure commitments (eg unusually high medical costs, debt repayments, transport costs and electricity costs). People who experience a lengthy period of substantial restriction are likely to have different life outcomes to those who experience only a transient episode.
Family ethnicity is defined in this indicator by the presence of an adult of a particular ethnic group. The figures for families defined in this way are not mutually exclusive.
Housing costs is the sum of annualised accommodation expenditure codes (includes mortgage payments (principal and interest), payments to local authorities, property rent, rent of private dwelling, boarding house, student accommodation not paid with formal fees). In this indicator the accommodation supplement is counted as income.
Note that the weightings used for the Household Economic Survey were revised for all years in 2001. Some figures in the 2003 and 2004 editions of this report may therefore differ from those presented in The Social Report 2001.
Note for the 2005 edition: It was discovered that the method used previously to convert household accommodation costs to economic family housing costs attributed higher costs to dependent children aged 15-17 years than should have been the case. The effect of this was to artificially depress the after-housing-cost income for some family units with dependent children in this age range. This had the flow-on effect of slightly raising the number of economic family units that appeared to have after-housing-cost incomes below the HEDY low-income threshold. The revision that has been applied removes this distortion and slightly reduces the numbers of economic family units falling below the threshold as a result.
Data sources: Derived from the Household Economic Survey by the Ministry of Social Policy/Ministry of Social Development.
Forster M and d’Ercole M M (2005) Income Distribution and Poverty in OECD Countries in the Second Half of the 1990s, OECD Social, Employment and Migration Working Papers No. 22.
EC4 Population with low living standards
Definition/formulae: The Economic Living Standard Index (ELSI) is a direct measure of material standard of living, based on information on the extent to which respondents economise on consumption because of cost; have ownership restrictions because of cost; have social participation restrictions because of cost; people’s own rating of their standard of living; and people’s rating of the adequacy of their incomes to meet day-to-day needs. The ELSI scale has seven reporting levels: level 1 "very restricted", level 2 "restricted", level 3 "somewhat restricted", level 4 "fairly comfortable", level 5 "comfortable", level 6 "good", level 7 "very good" living standards. Lower living standards encompass the bottom three categories (levels 1-3) of the ELSI scale.
See EC3 Population with low incomes for an operational definition of "economic families".
Family ethnicity is defined in this indicator by the presence of an adult of a particular ethnic group. The figures for families defined in this way are not mutually exclusive.
Limitations of data: Measures only material wellbeing.
Data source: New Zealand Living Standards 2000, Ministry of Social Development (2003b), Ministry of Social Development: Wellington.
EC5 Housing affordability
Definition/formulae: The proportion of households and the proportion of people within households with housing cost outgoings-to-income ratio greater than 30 percent.
Household incomes have been equivalised using the 1988 Revised Jensen Equivalence Scale.
Housing costs are the sum of annualised accommodation expenditure codes (includes mortgage payments (principal and interest), payments to local authorities, property rent, rent of private dwelling, boarding house and student accommodation not paid with formal fees). In this indicator the Accommodation Supplement is counted as income.
Limitations of data: Measures of housing affordability do not shed light on the issues of housing quality, suitability or sustainability, nor do they explain why affordability problems may exist, or the extent to which inadequate housing is occupied to avoid affordability problems. Furthermore, marginally housed families are often hidden from official statistics and therefore are not counted among those with an affordability problem.
Household ethnicity is defined in this indicator by the presence of an adult of a particular ethnic group. The figures for households defined in this way are not mutually exclusive.
Data source: Derived from the Household Economic Survey by the Ministry of Social Development.
EC6 Household crowding
Definition/formulae: The Canadian National Occupancy standard sets the bedroom requirements of a household according to the following compositional criteria:
- there should be no more than two people per bedroom
- parents or couples share a bedroom
- children under five years, either of the same or of the opposite sex, may reasonably share a bedroom
- children under 18 years of the same sex may reasonably share a bedroom
- a child aged 5-17 years should not share a bedroom with one under five of the opposite sex
- single adults 18 years and over and any unpaired children require a separate bedroom.
Limitations of data: There is no contemporary official statistic or index of household crowding in New Zealand . There are many frameworks or models used in many countries for analysing the incidence of crowding. It is unlikely any single measure of crowding could adequately summarise such a complex and multi-faceted issue as crowding.
There is no definitive evidence that crowding leads to negative social outcomes, but there are associations between living in crowded circumstances and negative outcomes. The mechanisms by which these outcomes result are not clear.
The Canadian Crowding Index is not an objective index of crowding. The extent to which household members will perceive themselves as living in crowded circumstances is dependent on many factors including social and cultural expectations. Furthermore, it cannot be assumed households requiring one or more additional bedrooms (based on the Canadian index) will suffer negative social outcomes.
The Canadian Crowding Index is used here as it is both sensitive to household size and composition. The measure sets a bedroom requirement for households based on precise criteria.
Data sources: Statistics New Zealand (1998) New Zealand Now - Housing, pp56-63.
Ministry of Social Policy (2001b) Definitions of Crowding and the Effects of Crowding on Health: A Literature Review, Research Series Report 1 p4.
Statistics New Zealand, unpublished data from the 2001 Census.
Civil and Political Rights
CP1 Voter turnout
Definition/formulae: The total number of votes cast is divided by the estimated number of people who would have been eligible to vote (voting-age population) on election day, and expressed as a percentage. To be eligible to vote, a person must be at least 18 years old and meet residential and certain other criteria.
Limitations of data: The voting-age population is based on population estimates that are subject to revision. The 1984 figure is based on the estimated de facto population aged 18 and over, as at 30 June 1984.
Data sources: Electoral Commission (2002) The New Zealand Electoral Compendium, 3rd edition.
Statistics New Zealand, estimated de facto population by age.
Department of Internal Affairs (2003) Local Authority Election Statistics 2001.
International Institute for Democracy and Electoral Assistance
CP2 Representation of women in government
Definition/formulae: The proportion of elected members of Parliament and local government bodies who are women.
Data sources: Electoral Commission (2002) The New Zealand Electoral Compendium, 3rd edition.
Department of Internal Affairs (2003) Local Authority Election Statistics 2001.
International Parliamentary Union Women in National Parliaments, Situation as at 30 April 2004.
CP3 Perceived discrimination
Definition/formulae: The proportion of people aged 18 and over who perceived selected groups as being the targets of discrimination (ie subject to some discrimination or a great deal of discrimination).
Limitations of data: Surveys on perceived discrimination do not measure actual levels of discrimination against groups.
The margin of error for a 50 percent figure at the "95 percent confidence level" is 3.6 percent.
Data source: Human Rights Commission Omnibus Results (January 2004).
CP4 Perceived corruption
Definition/formulae: The degree of corruption perceived to exist among New Zealand politicians and public officials according to surveys of business people, academics and risk analysts is used by Transparency International to construct the Corruption Perceptions Index. Corruption is defined as the "abuse of public office for private gain". Scores range from 0 (highly corrupt) to 10 (highly clean).
The index is based on a three-year rolling average of pooled survey results. The Corruption Perceptions Index 2004 was based on survey data provided between 2002 and 2004 and was drawn from 18 different polls and surveys from 12 independent institutions. The New Zealand data was drawn from nine surveys and the overall score of 9.6 was within a confidence range of 9.4-9.6.
Limitations of data: The Corruption Perceptions Index score is a subjective measure; there is no hard empirical data on levels of corruption that can be used for cross-country comparison. It was not designed to provide comparisons over time since each year the surveys included in the index vary. The index is a relative measure: New Zealand's ranking depends not only on perceptions of corruption in New Zealand but also on perceptions of corruption in the other countries surveyed. If comparisons with earlier years are made, they should be based on a country’s score, not its rank.
Data source: Transparency International Corruption Perceptions Index 2004.
Cultural Identity
CI1 Local content programming on New Zealand television
Definition/formulae: The hours of local content broadcast on TV One, TV2 and TV3 in prime-time, expressed as a percentage of the total prime-time schedule. TV3 commenced in November 1989. New Zealand programming includes first runs and repeats across all three channels.
Limitations of data: The number of local content hours broadcast on other free-to-air or pay channels is not included in the data presented here. Up until 2002 the hours data in table Cl 1.1 was measured over 24 hours; from 2003 onwards it was measured over 18 hours (6am to midnight).
Data sources: NZ On Air (2005) Local Content, New Zealand Television, 2004, [May 2005].
NZ On Air (2004) Local Content, New Zealand Television, 2003, [May 2005].
NZ On Air (2001) Local Content, New Zealand Television, 2000, [May 2005].
NZ On Air (1999) Local Content and Diversity: Television in Ten Countries NZ On Air: Wellington.
CI2 Māori language speakers
Definition/formulae: Māori language speakers as a proportion of the Māori ethnic group. Māori language speakers are defined as those able to hold a conversation about everyday things in Māori.
Limitations of data: The data relies on self-reporting rather than measuring the actual level of fluency in the population. More detailed information on the level of fluency among Māori language speakers is available from a nationwide survey undertaken in 1995. This data is not directly comparable with the census data because different definitions were used.
Data sources: Statistics New Zealand (2002b) New Zealand Census of Population and Dwellings: Māori.
Te Puni Kōkiri (2001) Provisional results of the 2001 Survey of the Health of the Māori Language.
CI3 Language retention
Definition/formulae: The proportion of people who can speak the "first language" (excluding English) of their ethnic group, for ethnic groups (other than Māori) with an established resident population in New Zealand, as recorded in the 2001 Census. The ability to speak a language is defined as being able to hold an everyday conversation in that language. "First language" refers to an indigenous language associated with a given ethnicity rather than the first language of an individual.
Several criteria were used to identify ethnic groups with an established resident population in New Zealand . These included total population size, years since the group’s arrival in New Zealand and the age distribution and birthplace (overseas and within New Zealand ) of group members. These variables provide a measure of the influence of time and of demographic characteristics of the groups. Each variable was applied independently to a large list of ethnic groups from which 15 were selected under the broad categories of Pacific peoples, Asian and European. To be selected, a group needed to have: a New Zealand resident population of over 2,000 people; a broad age distribution to investigate the impact of age on language retention; and sufficient numbers born in New Zealand to make meaningful comparisons with overseas-born residents.
Limitations of data: While a direct link can usually be made between a language and an ethnic group, this is not always the case. Some ethnicities are associated with several languages and one language can span several ethnicities. While English is an official language of some groups selected in these tables, the 2001 Census does not distinguish between different varieties of the English language. English has therefore been excluded as a first language within these tables. Because both the census variables ethnic group and language spoken allow more than one response, there may be some individuals who appear in more than one ethnic group category.
Data source: Statistics New Zealand (2004g) Concerning Language.
Leisure and Recreation
L1 Satisfaction with leisure time
Definition/formulae: The proportion of people aged 15 and over who are "satisfied" or "very satisfied" with their leisure time, according to the Quality of Life in New Zealand's Largest Cities Survey 2004.
Limitations of data: For more information see PW5 Satisfaction with work-life balance.
Data source:Auckland City Council et al (2005) Quality of Life in New Zealand's Largest Cities. For more information see PW5 Satisfaction with work-life balance.
L2 Participation in sport and active leisure
Definition/formulae: The proportion of adults (18 years and over) and young people (5-17 years) who were physically active as defined by the Sport and Physical Activity Surveys of 1997/1998, 1998/1999 and 2000/2001.
Being "physically active" means being either "relatively active" or "highly active". "Relatively active" means the respondent took part in at least 2.5 hours but less than five hours of sport/leisure-time physical activity in the seven days before the interview. Highly active means the respondent took part in five hours or more of sport/leisure-time physical activity in the seven days prior to the interview.
Limitations of data: Information on the activity of children was collected from parents with help from the children if they were present. This approach relied on the parents being well-informed about their children’s involvement in sport and leisure-time physical activity.
Data sources: Sport and Recreation New Zealand (2003a) SPARC Facts Series (1997-2001), retrieved 7 April 2004.
Sport and Recreation New Zealand (2003b) SPARC Trends: Trends in Participation in Sport and Active Leisure 1997-2001, retrieved 7 April 2004.
L3 Participation in cultural and arts activities
Definition/formulae: The proportion of the population aged 15 and over who experienced a cultural activity as measured in the 2002 Cultural Experiences Survey. Respondents were asked to report on activities they experienced over either a
12-month period (for goods and services accessed or experienced relatively infrequently) or a four-week recall period (for activities experienced on a more regular basis). The survey was undertaken as a supplement to the March 2002 quarter Household Labour Force Survey (HLFS).
Limitations of data: This was an ad hoc survey, and is not comparable with the indicator in The Social Report 2001. The focus of this survey was on experience/consumption; it did not include participation such as acting or performing.
Data source: Statistics New Zealand (2002a) 2002 Cultural Experiences Survey.
Physical Environment
EN1 Air quality
Definition/formulae: The level of ambient concentrations of PM10 averaged annually are categorised for five major urban centres in New Zealand . These levels are compared with the government’s PM10 guideline value of 20 mg/m3 (20 micrograms per cubic meter) averaged annually. PM10 is particulate matter that is less than 10 microns in diameter.
Limitations of data: Ambient air quality sites where data on PM10 levels are publicly available are few in number and tend to represent urban areas where "worst case" PM10 concentration levels are to be found. The monitoring sites are mainly located in residential areas where air pollution problems are anticipated or have already been confirmed. The sites do not therefore always represent the pollution levels that will be experienced over an entire town or city. The data, being so location-specific, cannot be compared with an OECD median. In September 2005, new air quality standards based on daily average PM10 concentrations will be introduced.
Data source: Ministry for the Environment (2005).
EN2 Drinking water quality
Definition/formulae: The 2000 Drinking Water Standards for New Zealand (DWSNZ) requires that all water leaving the treatment plant must be free of both faecal coliform bacteria (including E. coli) and Cryptosporidium. Additionally, adequate monitoring and the use of a registered laboratory are required to demonstrate full compliance with this standard. The indicator is the percentage of the population who are served by community water supplies and whose water supplies comply with the 2000 DWSNZ in respect of E. coli and Cryptosporidium.
Limitations of data: Drinking water rated not fully compliant may be the result of failing one of three of the microbiological criteria, of the use of a non-registered laboratory, or of inadequate monitoring, rather than being actually contaminated. Compliance with the DWSNZ 2000 standards regarding Cryptosporidium is measured at the treatment plant rather than at the tap, so there is a possibility of contamination between the treatment plant and the point of consumption.
Data source: Ministry of Health (2005b) Annual Review of Drinking Water Quality in New Zealand 2003.
Safety
SS1 Intentional injury child mortality rate
Definition/formulae: The number of children under 15 years of age who have died as a result of an intentional injury, per 100,000 children under 15 years.
(ICD-9 codes E960-E969, (up to 1999), ICD-10 codes X85-Y05 (2000)).
Limitations of data: Because of changes in the classification of ethnicity in death-registration data since September 1995, ethnicity data for 1996 and later years is not comparable with data from previous years.
Data sources: Ministry of Health (1999) Mortality and Demographic Data 1996, New Zealand Health Information Service, Table 4 p58 Table 4a p67.
Ministry of Health (2000) Mortality and Demographic Data 1997, New Zealand Health Information Service, Table 4 p55 Table 4a p63.
Ministry of Health (2001) Mortality and Demographic Data 1998, New Zealand Health Information Service, Table 4 p55 Table 4a p63.
Ministry of Health (2003) Mortality and Demographic Data 1999, New Zealand Health Information Service, Table 4 p61 Table 4a p71 Table 5a p78.
UNICEF (2003) "A League Table of Child Maltreatment Deaths in Rich Nations", Innocenti Report Card, No. 5 Table 1(a) p4.
SS2 Criminal victimisation
Definition/formulae: The number of individuals who have been the victims of one or more incidents of criminal offending over the 2000 year as a proportion of the population aged 15 and over, as measured by the 2001 National Survey of Crime Victims. The survey includes all behaviour reported by the respondents which falls within the legal definition of criminal offending. This provides a fuller picture of crime in New Zealand than that collected from Police records.
Criminal victimisation prevalence rates for 1995 have been revised slightly.
Limitations of data: The survey includes a wide range of behaviour with varying degrees of seriousness, but excludes offences such as shoplifting and tax evasion as well as victimless crimes such as drug abuse. Many of the reported behaviours may not be regarded as a "crime" by the victims and they may not regard the incident as requiring police intervention.
Differences in the method of collection and in the questionnaire may affect the comparability of the results from the 2001 and 1996 surveys.
The 2001 survey had a response rate of 62 percent and the 1996 survey had a response rate of 57 percent. The response rates for Māori and Pacific peoples were much lower. The differences in the response rates between the surveys, and the low response rates among Māori and Pacific peoples, may have impacted on both the validity of comparisons between the two surveys and the reliability of the findings of the 2001 survey, especially with respect to Māori and Pacific peoples.
Previous studies suggest sexual offending and domestic abuse are substantially under-reported in criminal victimisation surveys. The results, therefore, should be treated with some caution.
Data source: Morris et al (2003) New Zealand National Survey of Crime Victims 2001, Ministry of Justice, customised tables.
SS3 Perceptions of safety
Definition/formulae: The proportion of people who reported they felt unsafe walking alone in their neighbourhood at night, as measured by the 2001 National Survey of Crime Victims. People who said they did not walk alone at night were asked how they thought they would feel.
Limitations of data: People’s subjective perceptions about safety are not always linked to the actual risk of becoming a crime victim.
Data source: Morris et al (2003) New Zealand National Survey of Crime Victims 2001, Ministry of Justice.
SS4 Road casualties
Definition/formulae: Number of deaths caused by motor vehicles per 100,000 population. Number of injured persons resulting from motor vehicle crashes as reported to the police, per 100,000 population. Pedestrians or cyclists killed or injured by motor vehicles are included.
The data was drawn from the following International Classification of Diseases codes:
ICD-9, 810-819 (1996-1999)
ICD-10, V01-V89 (2000).
Limitations of data: The collection of ethnicity data changed during 1995 for both mortality and hospitalisation data. For mortality data, the basis of ethnicity has changed from a biological concept to a concept of self-identification; in mid-1995 hospitalisation data recorded multiple ethnic groups, whereas previously only one ethnic group could be recorded. Consequently, comparison of 1996 ethnic-specific data with previous years is misleading: 1996 is the start of a new time series for ethnic-specific data.
Because of a revision of the International Classification of Diseases, 2000 rates are not comparable with rates for 1996-1999.
Data sources: Ministry of Transport; Land Transport New Zealand ; New Zealand Health Information Service; New Zealand Travel Surveys; Statistics New Zealand ; International Road Traffic and Accident Database (OECD), Issued March 2005.
Land Transport New Zealand (LTSA) derives its data from two main sources: injury data from the Traffic Crash Reports completed by police officers who attend the fatal and injury crashes; and mortality and hospitalisation data from the New Zealand Health Information Service (NZHIS). LTSA does not report on ethnic-specific rates of death or hospitalisation; this data comes directly from NZHIS. The New Zealand Travel Survey 1997/1998 was based on a sample of approximately 14,000 people and the survey report compared results from a similar survey conducted in 1989/1990.
Social Connectedness
SC1 Telephone and internet access in the home
Definition/formulae: The proportion of the population with telephone and internet access in the home, as measured by the 2000 Living Standards Surveys.
The data is derived from responses to two Ministry of Social Policy surveys of living standards conducted in 2000, one of 3,060 older people (65 years and over) and the other of 3,682 working-age adults (18-64 years). Both surveys involved face-to-face interviews with nationwide representative samples.
For further details, see notes for EC4 Population with low living standards. See EC3 Population with low incomes for an operational definition of "economic families".
Family ethnicity is defined in this indicator by the presence of an adult of a particular ethnic group. The figures for families defined in this way are not mutually exclusive.
Data sources: Statistics New Zealand 2001 Census of Population and Dwellings.
Ministry of Social Development (2003b) New Zealand Living Standards Surveys 2000.
SC2 Participation in family/whānau activities and regular contact with family/friends
Definition/formulae: The proportion of the population who had family or friends over for a meal at least once a month, and the proportion who had participated in family/whānau activities, as measured by the 2000 Living Standards Surveys. Family/whānau activities were not specified in the surveys; respondents interpreted them in their own ways.
The data is derived from responses to two Ministry of Social Policy surveys of living standards conducted in 2000, one of 3,060 older people (65+ years) and the other of 3,682 working-age adults (18-64 years). Both surveys involved face-to-face interviews with nationwide representative samples.
For further details, see notes for EC4 Population with low living standards. See EC3 Population with low incomes for an operational definition of "economic families".
Family ethnicity is defined in this indicator by the presence of an adult of a particular ethnic group. The figures for families defined in this way are not mutually exclusive.
Data source: Ministry of Social Development (2003b) New Zealand Living Standards Surveys 2000.
SC3 Trust in others
Definition/formulae: The proportion of the population who report that people can "almost always" or "usually" be trusted, as reported in the Quality of Life in New Zealand's Largest Cities Survey 2004.
Limitations of data: For more information see PW5 Satisfaction with work-life balance.
Data sources:Auckland City Council et al (2005) Quality of Life in New Zealand's Largest Cities. For more information see PW5 Satisfaction with work-life balance and United Kingdom Performance and Innovation Unit (2002), [June 2005].
SC4 Loneliness
Definition/formulae: The proportion of the population who are lonely "all of the time", "often", or "some of the time", in the Quality of Life in New Zealand's Largest Cities Survey 2004.
Limitations of data: For more information see PW5 Satisfaction with work-life balance.
Data source:Auckland City Council et al (2005) Quality of Life in New Zealand's Largest Cities. For more information see PW5 Satisfaction with work-life balance.
SC5 Contact between young people and their parents
Definition/formulae: The percentage of secondary school students who reported in 2001 that most weeks they got enough time to spend with Mum and/or Dad (or someone who acts as Mum and/or Dad).
Limitations of data: Estimates from sample surveys are subject to error. The achieved sample size for the Youth2000 survey was 9,699 students, 4 percent of the total 2001 New Zealand secondary school roll.
Data sources: Adolescent Health Research Group (2003b) New Zealand Youth: A Profile of their Health and Wellbeing Auckland: University of Auckland Table on p46.
Adolescent Health Research Group (2003a) New Zealand Youth: A Profile of their Health and Wellbeing: Regional reports (2003).
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