4.2 Education and work histories

Table 4 displays descriptive statistics on mean differences between Maori and non-Maori in their education and work histories at age 21. The difference between the two ethnic groups in the proportion of youth who are female (54.5% for Maori and 51.0% for non-Maori) is not statistically significant at a 10% level. However, Maori have fewer school qualifications than non-Maori. It should be noted that these qualifications are not mutually exclusive. We have information on all qualifications received by age 21, and not merely the highest qualification received by that date. While only 68.7% of Maori received their School Certificate, 83.1% of non-Maori had received the same qualification. This ethnic difference is statistically significant at better than a 1% level (indicated by the two ‘asterisks’ in the Maori column).

** Maori mean significantly different from non-Maori mean at 1% level.

* Maori mean significantly different from non-Maori mean at 10% level.

Notes: These data are taken from the 973 respondents in the CHDS who provided valid information for the purposes of this study. Youth are defined as ‘Maori’ in this table if they identify Maori as at least one of their ethnicities at age 21, and had at least one parental figure claiming Maori ancestry by age 14. All other youth are considered to be ‘non-Maori’.

Maori were also significantly less likely to have received their 6^th Form or Higher School Certificate, and University Bursary than non-Maori. In fact, non-Maori in this sample were greater than two-and one-half-times more likely than Maori to receive this top school qualification. Although a relatively lower proportion of Maori received University Diplomas or Degrees, these ethnic differences are not statistically significant at a 10% level.[12] On average, Maori and non-Maori received 12.77 and 13.41 effective years of formal education, respectively. This difference is significant at better than a 1% level. Although Maori are more likely to have a vocational qualification than non-Maori, these differences are not statistically significant.

One of the advantages of the CHDS as a data source is the availability of almost continuous information on the various experiences of youth over their years as a teenager and young adult. Between the ages of 16 and 21, we can calculate the number of years that these individuals were not enrolled in either formal education or job training programmes. This is defined as their years of ‘potential’ work experience. This variable is based on detailed retrospective information on experiences taken from the surveys at ages 18 and 21. At the survey at age 21, for example, individuals were asked to recall their activities in three-month blocks over the three-year period between their 18^th and 21^st birthdays. We assign all three months to potential work experience if the individual was not enrolled in formal education or a training programme in that quarter. We assign one-and-a-half months to potential work experience if the individual was enrolled part-time in education or training in that quarter. We assign zero months to this variable if the individual was enrolled full-time in education or training in that quarter. It is important to note that nothing precludes someone from working while he or she is either studying or training (either part-time or full-time). However, we expect that the availability of time outside of education and training should, on average, lead to the accumulation of more actual work experience.

Maori had more years of potential work experience (3.135), on average, than non-Maori (2.569). This difference is statistically significant at better than a 1% level. This suggests that Maori generally spent less time in training and education over this five-year period than non-Maori. Correspondingly, Maori had more potential time available for accumulating work experience.

On average, Maori accumulated less work experience by age 21 than non-Maori.[13] Maori had a mean of 1.990 actual years of work experience compared to a mean of 2.278 for non-Maori. This difference of 0.288 years is statistically significant at better than a 1% level, and is equivalent to 14.5% of the non-Maori mean. The disparity is even more noteworthy when we consider the fact that Maori had significantly more potential work experience than non-Maori. One way to recognise this fact is to take the ratio of actual to potential work experience. These ratios are 0.887 for non-Maori (2.278/2.569) and 0.635 for Maori (1.990/3.135). Where non-Maori youth spent nearly nine-tenths of their potential time in actual work experience, Maori youth spent less than two-thirds of their potential time in actual work experience.[14]

With such a substantial difference in work experience by ethnicity, we can ask what these individuals were doing during the periods when they were not working, studying or training. Between the ages 16 and 21, Maori spent twice the amount of time unemployed (0.726 years) as non-Maori (0.360 years).[15] This difference is statistically significant at better than a 1% level. We can combine the work and unemployment experience variables in a single measure of ‘labour supply’. The total time spent in the labour force between ages 16 and 21 is nearly the same for the average Maori (2.716) and non-Maori (2.638).

There are also substantial differences in the employment circumstances of Maori and non-Maori at the time of the interview at age 21. Maori were less likely to be working (57.6%) relative to non-Maori (70.3%). For those working, Maori were less likely to be working part-time (21.1%) relative to non-Maori (36.2%). Correspondingly, employed Maori worked more hours per week (35.93) compared to their non-Maori counterparts (31.29). All of these ethnic differences are statistically significant at better than a 10% level.

There is no evidence of any ethnic differences in the mean hourly earnings received by those employed in this sample. The average wage paid to Maori workers ($9.44) exceeds that paid to non-Maori workers ($9.26), although the difference is not statistically significant.

Consistent with earlier findings, Maori (16.2%) were more likely to unemployed at the age 21 interview than non-Maori (8.9%). Maori (22.2%) relative to non-Maori (12.4%) were also more likely to be receiving either the Unemployment Benefit (UB) or Domestic Purposes Benefit (DPB) at the time of the survey. These ethnic differences are statistically significant at better than a 10% level. Maori were significantly less likely at age 21 to be enrolled in education or training (18.2%) relative to their non-Maori counterparts (37.5%).

A three-way ethnic split is also used to examine the education and work histories of these youth. These descriptive statistics are reported in Table 5. The first column in Table 4 (Maori) is subdivided into those who report Maori as their only ethnicity (sole Maori) and those that report Maori as just one of their ethnicities (mixed Maori). Note that the non-Maori group in this table is identical to the non-Maori in the previous table. The asterisks associated with the statistics in the first two columns of Table 5 indicate whether or not the mean values of the variables for sole and mixed Maori are each significantly different from those for non-Maori.

There are no significant differences in the proportion of females across the three ethnic groups. Both sole and mixed Maori have significantly lower proportions with School Qualifications, 6^th Form or Higher School Certificates and University Bursary compared to non-Maori. With all three variables, the proportions with school qualifications for mixed Maori lie between the proportions for sole Maori and non-Maori. The same relative rankings hold for effective years of formal education. Sole Maori by age 21 had spent an average of 12.58 years in education. This figure is higher for mixed Maori (12.95), and higher still for non-Maori (13.41). Where this ethnic difference in educational attainment is significant at better than a 1% level between sole Maori and non-Maori, it is only significant at a 10% level between mixed Maori and non-Maori.