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Household Debt in New Zealand
Appendix Table A.5 - Debt servicing ratio regression results for non-partnered individuals
  OLS regression coefficient Marginal effect on debt servicing ratio Marginal effect on the probability that the debt servicing ratio exceeds 0.3 Logistic regression coefficient Marginal effect on the probability that the debt servicing ratio exceeds 0.3 Sample mean
Male 0.111 0.002 0.012 -0.181 -0.007 0.446
  (0.069)     (0.172)    
Asset decile 2 0.255 0.005 0.017 -0.310 -0.006 0.079
  (0.178)     (0.587)    
Asset decile 3 0.326 0.007 0.023 -0.585 -0.010 0.099
  (0.165)*     (0.588)    
Asset decile 4 0.467 0.011 0.035 -0.541 -0.010 0.104
  (0.173)**     (0.555)    
Asset decile 5 0.682 0.017 0.056 0.197 0.005 0.109
  (0.174)**     (0.538)    
Asset decile 6 0.425 0.009 0.031 0.122 0.003 0.104
  (0.182)*     (0.548)    
Asset decile 7 0.945 0.028 0.086 1.134 0.046 0.111
  (0.204)**     (0.502)*    
Asset decile 8 1.064 0.033 0.102 1.539 0.077 0.112
  (0.22)**     (0.517)**    
Asset decile 9 0.980 0.029 0.091 1.844 0.109 0.109
  (0.233)**     (0.545)**    
Asset decile 10 0.964 0.029 0.089 2.218 0.158 0.104
  (0.269)**     (0.577)**    
Age 0.012 -0.012^ -0.040^ 0.005 -0.017^ 38.5
  (0.015)     (0.043)    
Age squared -0.001     -0.001    
  (0.00015)**     (0.0004)    
Maori/Pacific 0.091 0.003 0.010 -0.162 -0.006 0.165
  (0.084)     (0.254)    
Other ethnicity 0.301 0.012 0.034 0.995 0.064 0.053
  (0.161)     (0.341)**    
1 kid 0.073 0.003 0.008 -0.245 -0.009 0.086
  (0.1)     (0.359)    
2+ kids -0.070 -0.002 -0.007 -0.377 -0.014 0.082
  (0.118)     (0.289)    
Migrant -0.146 -0.005 -0.015 0.002 0.000 0.156
  (0.105)     (0.238)    
School or vocational quals -0.006 0.000 -0.001 -0.033 -0.001 0.525
  (0.074)     (0.195)    
Degree 0.131 0.005 0.014 -0.290 -0.011 0.169
  (0.104)     (0.322)    
Good health -0.080 -0.003 -0.009 -0.432 -0.021 0.917
  (0.121)     (0.262)    
Waikato 0.123 0.005 0.014 -0.036 -0.002 0.093
  (0.124)     (0.305)    
Wellington -0.037 -0.001 -0.004 -0.166 -0.007 0.133
  (0.105)     (0.282)    
Other North Island -0.083 -0.003 -0.009 -0.098 -0.005 0.199
  (0.1)     (0.246)    
Canterbury -0.216 -0.007 -0.021 -0.382 -0.016 0.149
  (0.102)*     (0.263)    
Other South Island -0.058 -0.002 -0.006 -0.579 -0.022 0.132
  (0.108)     (0.299)    
Unemployed 0.106 0.004 0.012 0.895 0.056 0.029
  (0.191)     (0.43)*    
Not in labour force -0.325 -0.010 -0.032 -0.074 -0.003 0.242
  (0.124)**     (0.278)    
Maximum income from government 0.344 0.013 0.038 1.066 0.051 0.266
  (0.121)**     (0.306)**    
Maximum income from other source -0.074 -0.002 -0.007 0.995 0.046 0.124
  (0.135)     (0.227)**    
Married 0.035 0.001 0.003 0.716 0.038 0.040
  (0.232)     (0.372)    
Divorced 0.553 0.022 0.064 0.147 0.006 0.152
  (0.099)**     (0.241)    
Widowed 0.091 0.003 0.009 -0.083 -0.003 0.091
  (0.174)     (0.573)    
Separated 0.342 0.012 0.037 0.507 0.024 0.108
  (0.115)**     (0.251)*    
Years in employment 0.011 0.004^ 0.011^ 0.003 0.001^ 16.2
  (0.006)     (0.015)    
Home owner 1.056 0.043 0.122 0.381 0.017 0.361
  (0.142)**     (0.253)    
Constant -4.162     -2.929    
  (0.359)**     (1.031)**    
Observations 4,135     4,135    
R-squared 0.20     0.15    

Note: Robust standard errors in parentheses below the coefficients

* significant at 5%; ** significant at 1% 

^ For age and years in employment, marginal effects are for an additional 10 years relative to the mean

Distributions were cut off at 1

Sources: SoFIE wave 2, Statistics New Zealand; the Treasury

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