6.3 Short and Long Regressions: Three-Way Split in Youth Ethnicity
Table 17 reports the results of the wage regressions using the three-way split in youth ethnicity. The specifications are identical to the regressions reported in Table 16, except for the inclusion of two ethnic indicator variables. This change has little impact on the other parameter estimates. The estimated coefficients on sole Maori are both positive at 0.072 in both regressions, but they are not significantly different from zero. The estimated coefficients on mixed Maori are 0.101 and 0.092, and they are also not significantly different from zero at a 10% level. Note that the R2 statistics under this three-way split in youth ethnicity (0.065 and 0.080, respectively) are almost identical to the R2 statistics under the earlier two-way split in youth ethnicity (0.064 and 0.080, respectively).
| Independent Variables | Without Background Factors | With Background Factors |
|---|---|---|
| Constant | 1.878**(0.064) | 1.668**(0.157) |
| Actual Years of Work Experience | 0.067**(0.015) | 0.068**(0.015) |
| Sole Maori | 0.072(0.072) | 0.072(0.074) |
| Mixed Maori | 0.101(0.065) | 0.092(0.066) |
| Female | -0.028(0.029) | -0.023(0.030) |
| Male · Number Children Born to Respondent | -0.056(0.072) | -0.060(0.073) |
| Female · Number Children Born to Respondent | 0.138(0.098) | 0.128(0.100) |
| School Certificate | 0.079*(0.044) | 0.079*(0.045) |
| 6th Form or Higher School Certificate | 0.010(0.035) | 0.011(0.036) |
| University Bursary | 0.116**(0.041) | 0.130**(0.043) |
| University Diploma or Degree | 0.062(0.073) | 0.067(0.074) |
| Vocational Qualification | -0.028(0.029) | -0.026(0.030) |
| Part-Time Employment (<30 Hours per Week) | 0.064(0.046) | 0.068(0.047) |
| Enrolled in Education | -0.018(0.047) | -0.018(0.048) |
| Mother had School Qualification | --- | 0.019(0.033) |
| Mother had Post-School Qualification | --- | 0.056(0.041) |
| Mother had University Degree | --- | 0.078(0.074) |
| Father had School Qualification | --- | -0.001(0.033) |
| Father had Post-School Qualification | --- | -0.051(0.046) |
| Father had University Degree | --- | -0.085(0.058) |
| Years in Single-Adult Family | --- | 0.049(0.109) |
| Maximum Number of Children in Family | --- | -0.008(0.012) |
| Years Family Received Benefit | --- | 0.038(0.108) |
| Real Family Income (in $10,000 units) | --- | 0.009(0.014) |
| Mean Conduct Problems Score | --- | 0.004(0.002) |
| Years Truant, Suspended or Expelled | --- | 0.068(0.246) |
| Convicted of Criminal Offence | --- | -0.080(0.051) |
| Alcohol/Drug Abuse or Dependence | --- | -0.001(0.031) |
| R2 | 0.065 | 0.080 |
| Adjusted R2 | 0.046 | 0.042 |
| Number of Observations | 671 | |
| Mean of Dependent Variable | 2.159 |
** Significantly different from zero at 1% level.
* Significantly different from zero at 10% level.
Notes: These data are taken from respondents in the CHDS who provided valid information for the purposes of this study. The dependent variable is the natural logarithm of hourly earnings for the 671 individuals who were working at age 21. Youth are defined as ‘Sole Maori’ in this table if they identify Maori as their only ethnicity at age 21. Youth are defined as ‘Mixed Maori’ if they report both Maori and any other ethnicity, and had at least one parental figure claiming Maori ancestry by age 14. All other youth are considered to be ‘non-Maori’. Standard errors are in parentheses.
We can perform the similar calculations to those associated with the two-way split in youth ethnicity. Again, there is no evidence from these regressions that either sole or mixed Maori face lower average wages than their non-Maori counterparts.
