4.3  Mean Comparisons Across Auckland Zones

Lastly, we discuss our results comparing the average level and average growth of the six measures of economic performance across the four Auckland zones. First, we present the graphical analysis for these results and then the regression analysis.

4.3.1  Graphical Analysis

Figure 6 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. Labour income and average wages are higher in Northern and Central Auckland than in Southern and Western Auckland, regardless of whether the self-employed are included in the wage rates. Labour income growth has been similar in all Auckland zones besides the Northern zone which has had slower growth and wage growth has been similar in all Auckland zones.

Figure 7 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 are highest in Northern Auckland, then Western and Central, and lastly Southern Auckland. Conversely, employment growth has been slowest in Northern, then Western, Central, and fastest in Southern Auckland. Aucklanders in the Central and Southern zones work more hours than those in the Northern and Western zones and work hours have increased in the Southern, Central, and Western zones relative to the Northern zone. Benefit receipt rates are lowest in Northern Auckland, followed by Western and Central, and highest in Southern Auckland, but receipt rates have greatly declined in Southern Auckland relative to all other Auckland zones.

4.3.2  Regression Analysis

Table 4 presents the ‘Auckland zone’ regression coefficients from the mean (OLS) regression for each of the six measures of economic performance.   The layout is the same as in previous tables.  In the left panels, the coefficients indicate the average relative difference in the mean level of economic performance over the entire sample period in each zone area relative to Northern Auckland.  In the right panels, the coefficients indicate the change in the relative difference in mean economic performance between 1997 and 2004 in each zone relative to Northern Auckland.  The top panels present the “unadjusted” regression coefficients.  The bottom panels present the “adjusted” regression coefficients controlling for all covariates.

Differences in labour income, employment, and benefit receipt rates within Auckland are entirely explained by differences in characteristics.  All of the difference in average wages for wage/salary workers and for all workers between the Southern zone and the rest of Auckland and two-thirds of the difference between the Western zone and the rest of Auckland is explained by differences in characteristics.  Aucklanders in Central and Southern zones work significantly more hours than those in Northern and Western zones; adjusted differences are smaller, but still significantly different between the Central and Northern zones.  Adjusted work hours have also increased significantly in the Western zone relative to the Northern zone.

Figure 6 – Income and Wages Across Auckland Zones