BRYCE WILKINSON: Thoughts for reducing child material hardship
Last month, the Ministry of Social Development released the latest of its excellent statistical reports documenting the extent of child poverty, hardship/deprivation in New Zealand.
The proportions are much below their peak rates around 15 years ago but are still too high.
In 2023-24, New Zealand’s child material hardship rate on a standard measure was 13% for children aged 0-17 years. The average for European Union countries was 14%. On the severe material deprivation measure, our 5% rate was bettered by 13 of 29 European countries. Several of those countries also have lower incomes per capita than New Zealand.
The richness of the report lies in its detailed breakdowns. The headline aggregate statistics are sliced in over a dozen ways - by age, household composition, earnings, liquid assets, ethnicity, housing ownership and tenure and disability. The report quantifies the effects of high housing costs on after-tax incomes.
Children most likely to face material hardship are those in households with certain features ─ such as no market income, no liquid assets, only one parent and social housing. Children classified as Māori or Pacific people are a high-risk category. Household disability also significantly adds to the challenges.
The report stresses that belonging to a category is not destiny. For example, the overlap between being in a low-income household and being in hardship is typically only 45%. Many one-parent Māori and Pacific households will be doing well.
Individual agency matters. US social scientist Charles Murray, emphasised the importance of attitudes to work, stable marriage, parental responsibility and self-reliance. Researchers building on Murray's work distil this into a "success sequence": avoid teenage pregnancy, complete schooling, get a job and stay in work, marry and stay married, and only have children once you can afford them.
Of course, there are still no guarantees. Bad luck, accidents and disability can wreck anything.
There is much that governments do that makes it harder or easier for young adults to achieve such goals. The quality of public education is crucial. Unaffordable housing is a policy-driven disaster. Barriers to first jobs are too high. Welfare programmes need to be rigorously evaluated.
Governments have put too many barriers in the way of kids making the transition from public education to work. This is like cutting off the bottom rungs of the ladder the young need to climb. Disruptive AI advances add to the concern.
Bryce Wilkinson is a Senior Fellow at The New Zealand Initiative
I suspect there’s a similar ‘failure sequence’ that includes things like choosing gang members as friends and role models, experimenting with drugs, etc.
Yes too many barriers preventing the young finding employment apprenticeships are a good start but are there enough of them. Employers need to 'give them a go' and encourage them to find their feet. Sadly alot dont wish to do this and employ immigrants.. Once all New Zealanders have employment then is the time to employ immigrants. NZ doesnt have enough housing for its own people let alone others.
The financial system is flawed and will stay that way until enough people hurt enough to demand a change. My father and his friends warned of what is happening seventy five years ago. the majority thought it was a joke or ignored the message entirely. How long will it take to work out a system where all have enough and most can be industrios and prosperous.
100%
Very good summary.
Happiness and welfare are not determined by ethnicity but attitude. There are numerous examples of this being true.
Getting married and having children for the correct reasons and taking responsibility for those decisions is critical.
Education is the big one and I am pleased to learn of the new initiatives. For too long education has been taught by academics producing more academics but more often failed academics.
Not all have the interest or abilities to be academics. Our education system until now has not appreciated this. Failing students because of an ideology is the first step to low self esteem and withdrawal of hope.
Those teachers need to be more worldly than being a student, learning to…