Research conducted by Motu, in conjunction with MindTheGap: Pay gaps – an $18 billion a year issue

The research was conducted by economic and policy researchers Motu, in partnership with MindTheGap, to calculate the true economic cost of both gender and ethnic pay gaps in New Zealand.

The research showed that gender and ethnic pay gaps, when combined, result in a penalty of $17.6 billion, or 11% of wages and salaries.

There is a substantial hourly pay gap between ethnic groups. Compared with Pākehā/European men, Māori men earn 17% less, Pacific men earn 23% less, and Asian men earn 11% less.

Women are subject to both the gender and ethnic pay gap. Compared with the average hourly pay rate of Pākehā/European men, Pākehā/European women earn 12% less, wahine Māori earn 23% less, Pacific women earn 24% less, and Asian women earn 17.4% less.

MindTheGap Research Report | May 2022

MindTheGap has conducted analysis investigating what the impact of pay gap reporting has been in other countries and what the potential impact is for New Zealand. The analysis showed that a woman earning the current median wage ($26.37) could receive $12.80 - $35.77 a week more) if pay gap reporting legislation is introduced.

The report from the MindTheGap campaign analyses public pay gap reporting impacts in seven countries and shows mandatory reporting can reduce gender pay gaps by between 20-40 percent.   

For more information on the Report and its findings, or for media enquiries, please contact Nina Santos (nina@mindthegap.nz).