Globalization and real wages in New Zealand 1873-1913

This paper reports annual real wage indexes for laborers and for workers more generally in New Zealand, adjusted for purchasing power parity, for the years 1873-1913. These data are used to include New Zealand in the debates surrounding international wage convergence. On the basis of time series tests we find evidence of an integrated trans-Tasman labor market. Productivity, the terms of trade, and swings in labor’s income share, rather than immigration, shaped New Zealand’s wage growth.