The Treasury

Global Navigation

Personal tools

Treasury
Publication

Household Debt in New Zealand
Appendix Table A.6 - Debt servicing ratio regression results for couples
  OLS regression coefficient Marginal effect on debt serving ratio Marginal effect on the probability that the debt serving ratio exceeds 0.3 Logistic regression coefficient Marginal effect on the probability that the debt serving ratio exceeds 0.3 Sample mean
Asset decile 2 0.348 0.008 0.025 1.949 0.009 0.101
  (0.121)**     (0.878)*    
Asset decile 3 0.845 0.027 0.078 3.296 0.037 0.097
  (0.139)**     (0.874)**    
Asset decile 4 1.121 0.042 0.117 3.778 0.059 0.102
  (0.141)**     (0.872)**    
Asset decile 5 1.091 0.040 0.112 3.755 0.058 0.100
  (0.142)**     (0.885)**    
Asset decile 6 1.068 0.039 0.109 4.198 0.088 0.107
  (0.151)**     (0.879)**    
Asset decile 7 1.035 0.037 0.104 3.796 0.060 0.103
  (0.153)**     (0.888)**    
Asset decile 8 0.973 0.033 0.095 4.504 0.116 0.099
  (0.172)**     (0.889)**    
Asset decile 9 1.263 0.051 0.140 4.960 0.172 0.101
  (0.167)**     (0.887)**    
Asset decile 10 1.395 0.061 0.162 5.617 0.287 0.097
  (0.184)**     (0.892)**    
Sum of age 0.022 -0.025^ -0.072^ 0.010 -0.027^ 89.1
  (0.01)*     (0.031)    
Sum-of-age squared -0.0003     -0.0002    
  (0.00005)**     (0.00015)    
Both Maori/Pacific 0.304 0.017 0.044 0.549 0.033 0.084
  (0.091)**     (0.286)    
Both Other 0.004 0.0002 0.0005 0.347 0.019 0.058
  (0.149)     (0.276)    
Maori-European mix 0.234 0.013 0.033 -0.144 -0.006 0.090
  (0.095)*     (0.286)    
Other ethnicity 0.316 0.018 0.046 0.643 0.040 0.028
  (0.175)     (0.382)    
1 kid 0.069 0.004 0.009 -0.024 -0.001 0.173
  (0.077)     (0.202)    
2+ kids 0.033 0.002 0.004 -0.102 -0.005 0.326
  (0.069)     (0.172)    
Migrants 0.265 0.015 0.038 1.060 0.074 0.141
  (0.1)**     (0.2)**    
One migrant -0.115 -0.005 -0.015 0.098 0.004 0.170
  (0.081)     (0.202)    
Both school or vocational -0.095 -0.005 -0.013 -0.145 -0.007 0.280
  (0.089)     (0.236)    
Both degree -0.308 -0.014 -0.039 -0.539 -0.023 0.092
  (0.124)*     (0.297)    
One degree -0.109 -0.006 -0.015 -0.240 -0.012 0.166
  (0.1)     (0.253)    
One unskilled, one school or vocational 0.044 0.002 0.006 0.034 0.002 0.291
  (0.083)     (0.231)    
Both good health -0.231 -0.013 -0.033 -0.155 -0.008 0.894
  (0.243)     (0.696)    
One good health -0.115 -0.007 -0.017 -0.267 -0.014 0.094
  (0.249)     (0.696)    
Waikato 0.136 0.008 0.019 0.140 0.008 0.103
  (0.106)     (0.24)    
Wellington -0.098 -0.005 -0.013 -0.351 -0.016 0.117
  (0.093)     (0.224)    
Other North Island 0.002 0.000 0.000 -0.136 -0.007 0.228
  (0.08)     (0.2)    
Canterbury -0.076 -0.004 -0.010 -0.232 -0.011 0.133
  (0.086)     (0.208)    
Other South Island -0.159 -0.008 -0.021 0.027 0.001 0.115
  (0.105)     (0.247)    
Both Unemployed 0.586 0.043 0.098 1.871 0.199 0.002
  (0.578)     (0.779)*    
Both out of the labour force -0.449 -0.019 -0.054 -0.130 -0.006 0.089
  (0.18)*     (0.45)    
One Employed -0.030 -0.002 -0.004 0.370 0.020 0.225
  (0.069)     (0.168)*    
Unemployed/not-in-labour-force mix -1.192 -0.037 -0.107 0.920 0.064 0.005
  (0.438)**     (0.696)    
Maximum income from government 0.498 0.031 0.076 0.994 0.064 0.093
  (0.15)**     (0.365)**    
Maximum income from other source 0.014 0.001 0.002 0.523 0.027 0.232
  (0.08)     (0.16)**    
Neither partner ever married -0.281 -0.013 -0.035 -0.002 -0.0001 0.117
  (0.092)**     (0.303)    
Other marital status mix 0.303 0.018 0.045 0.301 0.017 0.074
  (0.084)**     (0.238)    
Sum of years in employment 0.001 0.0004^ 0.001^ 0.010 0.010^ 44.7
  (0.004)     (0.01)    
Home owners 0.772 0.035 0.095 -0.194 -0.010 0.680
  (0.094)**     (0.184)    
Constant -3.948     -5.952    
  (0.481)**     (1.775)**    
Observations 4,725     4,725    
R-squared 0.26     0.16    

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 20 years relative to the mean

Appendix Figure A.1 - Debt servicing to income ratio

Appendix Figure A.1 Debt servicing to income ratio
Distributions were cut off at 1
Sources: SoFIE wave 2, Statistics New Zealand; the Treasury
Page top