Mobility rules: why New Zealanders oppose redistribution

Abstract

Observers have noted that New Zealanders are less inequality averse and less in favour of redistribution than one would expect given actual levels of income and wealth inequality in the country. Attempted explanations have been unsatisfying, partly because of a lack of an explicit comparative focus. This paper uses four waves of the World Value Survey (2000–2020) and compares New Zealand views with those of respondents in 18 other high-income OECD states. New Zealanders across the board are indeed outliers, but this is explained by the extensive experience of intergenerational educational mobility of successive NZ cohorts. New Zealanders also believe that their society is characterised by a large degree of equality of opportunity and this overrides any concern that they might have about inequality of outcomes. While there may also be other ideational and institutional factors to consider, a series of hierarchical binomial logit regressions confirm that experiences and perceptions of upward mobility must be part of any explanation of New Zealand idiosyncrasies.

Keywords

• income inequality
• social mobility
• inequality aversion
• new zealand
• world values survey