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3.2  Income concordance

HES asks people about their income and benefit receipt in the past 12 months rather than over the last tax year. In order to compare to the administrative measures of income to HES, we take the relevant time period from IRD income data as being the prior 12 months including their full interview month. This partially addresses a limitation with the IRD data, which uses month as the most granular unit. For these comparisons, IRD data available only as annual amounts have been equally distributed across the 12 months in the year.

It is not straight forward to develop a concordance between HES and IDI income. There are many categories, such as overseas income and investment income, that are included in HES but not in the IDI. Similarly, there are two categories (benefits and ACC claims) of IDI income that we do not compare to HES income. We have excluded from HES the following categories that are not easily mapped to IRD categories: most forms of investment income (interest from bonds, stocks and managed funds, bank deposits, dividends etc.), benefits (which are analysed separately in section 5), overseas incomes and some types of New Zealand government pensions (we capture New Zealand Superannuation, Veteran's Pension, War Disablement Pension and the Surviving Spouse Pension).[15]

For the exact income categories we used, see Table 5 in Appendix A, which gives the fine-grained income codes included in the total and in each subcategory of income (wage and salary income, self-employment, partnership, etc.).

Notes

  • [15] The pension category excluded is HES category 3.1.0.05 Other type of New Zealand Government pension.
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