The potential for a ‘collateral’ demographic dividend – the case of New Zealand Māori.

This paper outlines how a potential ‘collateral’ demographic dividend is presently arising in New Zealand, as the relatively youthful Māori population (median age 23) goes through its dividend years alongside its ageing, mainly European-origin counterpart (median age 40). As with the conventional first and second dividend periods, converting the collateral dividend to an economic windfall will not occur in and of itself – that requires identification of the window of opportunity, proactive investment in social capital, and political will. The paper locates the arguments in the context of New Zealand’s major industrial groupings which already have fewer employed people at labour market entry than exit age, especially in rapidly ageing regional areas which paradoxically have a disproportion of youthful Māori residents.