Impact of Economic Shocks on Well-Being of NZers

Media Release
Motu Economic and Public Policy Research

11 September 2007
The Impact of Economic Shocks on the Well-Being of New Zealanders

How effective are New Zealand’s social safety nets in reducing the impact that changes in economic circumstances have on individual and household well-being?

This is a question that Motu Economic and Public Policy Research has been awarded $600,000 of Marsden-funding to examine.

“Little past research has examined the impact of economic shocks on the well-being on New Zealanders has been undertaken,” says Dr Steven Stillman who is leading this research programme.

“But it is important to do this research because economic shocks, such as job loss, can have such a significant impact on individuals. They can directly affect individuals’ earning capacity, forcing them and their families to alter their spending, saving or employment plans.”

Dr Stillman and other researchers at Motu, in conjunction with the University of Waikato, will use data from the new Survey of Family, Income and Employment (SoFIE) to explore in detail the impact of economic shocks on New Zealanders.

“Data from SoFIE will enable us to determine what sort of person is most likely to be affected by economic shocks and how economic shocks affect an individual's employment status and income, as well as how they affect other household members, household composition, housing circumstances and wealth.

“This research will fill a major gap in our understanding of the impact economic shocks can have on the well-being of New Zealanders.”

ENDS

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