Income Distribution in New Zealand is the first of a series of books to be published by the Institute of Policy Studies throughout 1996 on Income Distribution and Social Policy.

New light is increasingly being cast on the analysis of income distribution. New ways of thinking about the problem have been stimulated by the discovery of some new facts and methods for analysis. It is argued in this volume that these new facts and arguments need to be considered when people discuss whether it is true that the rich are getting richer and the poor are getting poorer, and more generally the role of policy in affecting social outcomes. Fundamentally the main characteristic of this new approach is that it adopts a more dynamic perspective on the nature of the problem of income distribution and the role of social policy generally.

As the first of a series on this topic, this book aims to lay some groundwork and present some preliminary results. First, it briefly reviews the main elements that have contributed to the development of the new and more dynamic view on income distribution and social policy. Second, it examines available evidence on income dynamics and income distribution in New Zealand since the 1950s.

Three distinct periods are then identified from an analysis of available evidence on income dynamics and income distribution and social policy. These are, first, from the early 1950s to around 1977; second, 1977 to 1987; third, 1987 to 1991; and fourth, post-1991. The period 1987 to 1991 is identified as a time of significant change, and further analysis is therefore presented on what factors drove the changes, and who was most affected. The period post-1991 is also examined in some depth to assess the subsequent trends. The final section concludes with a summary, an account of some problems emerging from the analysis that are worthy of policy attention, and directions for future research.