Report: Ethnicity and the Gender Pay Gap
New Zealand’s cultural make-up is increasingly diverse. The shares of the population who identify as Māori, Pacific, Asian, Middle Eastern, Latin American and African have all grown.
Large ethnic pay gaps exist in New Zealand, with Europeans earning more than any other ethnic group. For women of diverse ethnicities this means gender and ethnicity combine to create larger pay gaps compared with the median hourly earnings of all men. The New Zealand General Social Survey has found that the workplace is also the most commonly reported location for New Zealanders to experience racial discrimination.
The gaps in pay between all men and wāhine Māori, and between all men and Pacific women are substantially higher than the overall gender pay gap (GPG).
The gender pay gap is just one measure of economic wellbeing. Another is unemployment. Unemployment rates for wāhine Māori and Pacific women are double the overall rate for women.
Employers have an important role in reducing inequality and ensuring that the capability of diverse women is recognised. An organisation that rewards the contribution of diverse women can reap the benefits of the broader experience, networks and problem-solving approaches that a diverse workplace can bring. This begins by understanding people as individuals, by building trusting teams, by learning to value each other and by taking care to avoid bias.
The relationship between gender ethnic pay gaps and sectors of work is being investigated by Manatū Wāhine in association with Auckland University of Technology. A forthcoming report will identify the size of gender and ethnic pay gaps by sector, and their drivers, to help businesses identify where they can take action.
For more information about our recommended actions for employers, take a look at the “What Can Employers Do?” page.