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Changes in the distribution of earnings in New Zealand between 1984 and 1997 are examined in this paper. There is evidence of growth in the inequality of both weekly and hourly earnings. Decomposition of the changes suggests that the increases in the dispersion of earnings were largely due to increased inequality within groups of workers with similar observed levels of education, age and potential work experience. 1·2

The Growth of Earnings Inequality, 1984-1997: Trends and Sources of Change