4. Empirical results
4.1 Mean Comparisons Across Regional Areas
We begin by discussing our results comparing the average level and average growth of the six measures of economic performance across the five ‘regional’ areas. First, we present the graphical analysis for these results and then the regression analysis.
4.1.1 Graphical Analysis
Figure 2 presents the graphical results for Real Annual Labour Income, the Real Hourly Wage for Wage/Salary Workers, and the Real Hourly Wage for All Workers. The left column presents the ‘levels’ results and the right column the ‘growth’ results. Auckland has the second highest average labour income behind Wellington, but ahead of all other areas. Wellington and Auckland have the highest average wages with the other areas clustered much lower. In general, wages are higher when the self-employed are included, but the differences between areas are similar. Labour income growth in Auckland is middle of the pack, faster only than in Wellington, but wage growth for wage and salary workers has been strongest in Auckland by a fair margin. Wage growth for all workers is also strongest in Auckland but much more similar to the other areas.
- Figure 2 – Income and Wages Across Regional Areas
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Figure 3 presents the graphical results for Employment Rates, Weekly Hours Worked by the Employed, and Benefit Receipt Rates. This figure follows the same layout as the previous. Employment rates in Auckland are lower than all other areas besides Other Urban. Workers in Auckland work similar hours to those in Wellington and Rural, but more than those in Christchurch and Other Urban. Auckland has lower levels of benefit receipt than all comparison areas other than Wellington. Employment growth occurred in all areas other than Auckland (and Wellington) and by 2004 employment rates in Auckland were much lower than in the other areas. There has been a small increase in work hours in Christchurch relative to the other areas but no other changes during the sample period. Benefit receipt has declined in Auckland (and Christchurch) relative to the comparison areas.
- Figure 3 – Non-Wage Outcomes Across Regional Areas
