Abstract
Data for the Census years 1986, 1991 and 1996 show that Maori/non-Maori differences in employment and unemployment rates increased over the ten-year period. In search for a possible explanation, multinomial log it models are estimated with unit record data in order to control for changes in socio-economic and demographic factors such as age, qualification, and family and parental situation. The analysis shows that the Maori/non-Maori differences in employment (unemployment) that are explained by the multinomial logit models decreased from 51% (43%) in 1986 to 38% (34%) in 1996. Two potential contributors for declining relative labour market outcomes of Maori men are identified: increasing returns to skills and changes in the sectorial composition of the workforce.
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