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In-work poverty - Coggle Diagram
In-work poverty
Core issues
In-work poverty in Aotearoa New Zealand disproportionately affects certain ethnic groups.
Māori, Pasifika, Asian, and MELAA households experience higher poverty rates despite being employed.
Highlights systemic inequalities persisting even among those who are employed.
Causes
Structural factors: Colonisation, systemic racism, and historical discrimination shaping occupational and educational outcomes.
Occupational segregation: Overrepresentation of disadvantaged ethnic groups in lower-paid, insecure industries (e.g., care work, hospitality, manual labour, manufacturing, retail, construction).
Household size: Larger households (common among Māori and Pasifika due to cultural multigenerational living) increase financial strain.
Policy and historical exclusion: Limited access to higher education and higher-paying jobs for marginalized groups; historical patterns continue to influence outcomes.
Examples/Data
In work poverty rates by ethnicity
Māori: 8.6%
Pasifika: 9.5%
Asian: 9.4%
MELAA: 9.5%
NZ European: 5.9%
Other ethnicities: 5.5%
Average in-work poor household sizes:
Māori: 3.85
Pasifika: 5.14
Asian: 3.45
MELAA: 3.68
NZ European: 2.84
Historical examples: Pacifica guest workers post-WWII employed in low-paid factory jobs.
Māori historically channelled away from higher education and skilled employment.
Theoretical Perspectives
Anti-Racist Perspective:
Poverty is largely a result of systemic racism and historical colonisation.
Emphasises structural discrimination in education, labour markets, and policy.
Advocates for targeted interventions addressing racial inequality.
Structural Functionalist Perspective:
Poverty viewed as a functional part of society, motivating workforce participation and maintaining societal order.
Emphasises skills, effort, and education rather than systemic discrimination.
Solutions focus on economic integration and workforce upskilling.
Effectiveness of policies
Anti-Racist Policy Approaches:
Targeted career pathway programs for Māori and Pasifika.
Whānau-centred employment supports.
Fair pay agreements to increase wages and security in low-paying industries.
Ethnic pay gap reporting to ensure accountability.
Effectiveness: Likely more successful in reducing ethnic disparities as they directly address systemic and historical inequalities.
Structural Functionalist Policy Approaches:
Workforce training and upskilling programs.
Expanding high-paying employment sectors (e.g., tech, construction, renewable energy).
Adjusting social support (e.g., Working for Families tax credits).
Effectiveness: Improves general workforce participation and productivity but may overlook structural racism, potentially sustaining existing ethnic inequalities.