sign up log in
Want to go ad-free? Find out how, here.

The NZ Initiative's Eric Crampton shakes his head at some recent judicial rulings and some outsider rankings. But he still reckons we are outside the asylum

The NZ Initiative's Eric Crampton shakes his head at some recent judicial rulings and some outsider rankings. But he still reckons we are outside the asylum
Eric Crampton questions a WEF survey that shows the gender gap is 'worse' in NZ than the Philippines.

By Eric Crampton*

We moved to New Zealand over a decade ago because I reckoned it the world’s least mad country: the Outside of the Asylum. It tops my informal ranking on this important metric.

It’s been a week of many alternative rankings and a couple of judicial decisions that threaten our coveted "Outside of the Asylum" status.

Expats rank New Zealand as the best place to raise a family, albeit with more constrained economic opportunities than elsewhere. The HSBC’s "Expat Explorer" is well worth checking out.

In another international ranking this week, the World Economic Forum ranked New Zealand 13th in the world on a Gender Gap Index.

Checking the index sub-components, it is a bit odd that New Zealand ranks below Belize, Ecuador, Guyana and Mongolia on women’s "health and survival" and below Rwanda and Bangladesh on women’s "political empowerment".

Further, New Zealand ranked second in Asia-Pacific to the Philippines. Statistics New Zealand reports that 233 people left here for the Philippines in the year ended September 2014 and 3,646 moved in the opposite direction; perhaps migration choices provide us a somewhat more informative ranking.

Finally, UNICEF notes that New Zealand is roughly middle-of-the-pack when it comes to changes in child poverty rates. Child poverty rose in 23 of 41 countries and fell in 18.

New Zealand’s 0.4 percentage point drop in child poverty rates places it 16th out of 41, despite national headlines here suggesting the country has done terribly.

If the government is successful in encouraging increased housing supply, our ranking on this measure should rise: poor families will have more to spend on food when the rent goes down.

Most important for me remains our world-leading "Outside of the Asylum" ranking. As the rest of the world goes mad, we generally don’t follow along. Two court rulings this week might jeopardise that status.

First, as Rodney Hide noted in last week’s National Business Review, the courts decided that if you choose a religion that precludes you from doing your job, your employer just has to deal with it. I’m still pondering what new religion I might develop to best take advantage of the new legal situation while Oliver considers the modifications to his beliefs that might counter such opportunism.

Second, the courts have decided that normal supply, demand, and marginal productivity should not determine wage rates but rather some judicial assessment of which jobs, across wildly different industries, require comparable skills. We will have gone utterly mad if this ruling stands on appeal.

Ultimately, the metric that matters most is whether you’d be happier living anywhere else.

In a world with freer immigration, it would be easier for everyone to say, as I do, that they couldn’t be happier anywhere else.

 ---------------------------

*Eric Crampton is Head of Research at the New Zealand Initiative.

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

10 Comments

normal supply, demand, and marginal productivity should not determine wage rates

Does the writer actually think there is such a thing as 'normal supply and demand' ? where would he find such a thing , outside of a text book.

Wages rates are determined by a very large number of things, maybe supply and demand have some obscure impact but it would be hard to tell.

Relative power seems very important in the determination of wage rates.

 

Up
0

Exactly - look to Friday's S&P close - hardly a response to improved US domestic economic factors - purely a knee jerk reaction to the prospect of accelerated Yen carry trade activity and hence speculative E-mini S&P futures position taking. Read more

Up
0

I would suggest that relative power is the principal, by a country mile, determination of wage rates, hence the need to keep increasing population in order for the powerful to be able to maintain over the powerless. It is no accident that in the sparsely popuated South Island that wages and opportunity are greater than in the North Island

Up
0

why do you think there is no (or marginal) supply and demand factor in wages? or is "hard to tell"? in my industry (health) if I want an associate I know I can offer below the average rate and struggle to find someone, or above the average rate and take my pick. That is supply and demand. What industries are you referring to? the public sector doesn't count.

Up
0

Associate? Associate? So should we be referring to people working as caregivers associates rtather than employees?

From your words I would suggest that you are a wee bit out of touch with the real world at the coal face of many industries.

Explain the garbage wages in forestry, if you will, as well.

Up
0

Some 32 per cent of new credit these days is used simply to pay off the interest on existing debts

  http://www.ft.com/intl/cms/s/0/f79ac2dc-5a10-11e4-be86-00144feab7de.htm…
Up
0

Wow doesnt say much for rest of world!!

Our Finance Minister sells assets giving double digit  returns to pay debt costing well less (the beneficiary here being the NZSE);

Our Finance Minister, who double-dipped on his housing allowances, gives advice on the housing crisis facing low-income NZ;

Our farmers continue to add to soil cadmium levels each and every year, and have been gifted the carbon credits from forestry;

The Govt continues to pork-barrel for dairying, subsidizing mega-irrigation projects that dont stand on their own on either environmental nor economic grounds; this subsidy both financial and regulatory (eg sack the Canterbury Reg council to speed up consents and heavily edit the Conservation dept Report on the Hawkes Bay fiasco)

Our National leaders think that water safe to wade in is an adequate standard for freshwater whilst still promoting our NZ Fresh Tourism brand;

Our PM now thinks that 14,000ha isnt much land(Lochinver), and doesnt lead to us eventually becoming 'tenants in our own country';

Our Govt negotiates away our sovereignity, in the guise of Free Trade negotiations, in complete secrecy well away from public scrutiny;

Our opposition is non-existant and wonder where their support has gone; they should ask Helen Clark about that; her govt negotiated away the Labour Party support base in her FTA with China;

Etc etc. This guy needs to get out more; the insanity runs just as deep here.

Up
0

offcut2 - Well spoken

Up
0

Such a pity that not enough of us give a damn

Up
0

"Statistics New Zealand reports that 233 people left here for the Philippines in the year ended September 2014 and 3,646 moved in the opposite direction; "

Talking about absolute numbers of migratants without taking the population base into account can be a bit misleading.

 

0.0037401% of philipinos moved to NZ, while 

0.0052114 of nz moved to phillipines.  

Seems the Philippines really is more popular!

Up
0