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Labour productivity in Auckland firms

Author

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  • Maré, David C.

Abstract

This paper examines labour productivity in Auckland, New Zealand’s largest city, using microdata from Statistics New Zealand’s Prototype Longitudinal Business Database. It documents a sizeable productivity premium in Auckland, around half of which is due to industry composition. There is a cross sectional correlation between productivity and employment density, reflecting differences in both physical productivity and prices. This correlation is evident both within Auckland, and comparing Auckland with other areas. The relationship between changes in density and changes in productivity is less strong. The relationship between productivity and overall or own-industry employment density varies across industries, suggesting that the nature and extent of agglomeration benefits varies. Overall, localisation effects appear stronger than urbanisation, with productivity being more strongly related to own-industry density than to overall density.

Suggested Citation

  • Maré, David C., 2008. "Labour productivity in Auckland firms," Motu Working Papers 292652, Motu Economic and Public Policy Research.
    • Handle: RePEc:ags:motuwp:292652
    DOI: 10.22004/ag.econ.292652
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    Cited by:

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    2. Philip Morrison, 2011. "Local Expressions of Subjective Well-being: The New Zealand Experience," Regional Studies, Taylor & Francis Journals, vol. 45(8), pages 1039-1058.
    3. Mare, David C. & Coleman, Andrew & Pinkerton, Ruth, 2011. "Patterns of population location in Auckland," Motu Working Papers 291435, Motu Economic and Public Policy Research.
    4. Fabling, Richard & Mare, David C, 2015. "Production function estimation using New Zealand’s Longitudinal Business Database," Motu Working Papers 290585, Motu Economic and Public Policy Research.
    5. Mare, David C., 2016. "Urban productivity estimation with heterogeneous prices and labour," Motu Working Papers 290558, Motu Economic and Public Policy Research.
    6. Penny Mok & Geoff Mason & Philip Stevens & Jason Timmins, 2012. "A Good Worker is Hard to Find: Skills Shortages in New Zealand Firms," Occasional Papers 12/5, Ministry of Economic Development, New Zealand.
    7. Roger Procter, 2011. "Echanching Productivity: Towards an Updated Action Agenda," Occasional Papers 11/1, Ministry of Economic Development, New Zealand.
    8. Arthur Grimes & Jason Le Vaillant & Philip McCann, 2011. "Auckland's Knowledge Economy: Australasian and European Comparisons," Occasional Papers 11/2, Ministry of Economic Development, New Zealand.
    9. Maré, David C. & Graham, Daniel J, 2009. "Agglomeration Elasticities in New Zealand," Motu Working Papers 292641, Motu Economic and Public Policy Research.
    10. Maré, David C. & Graham, Daniel J., 2013. "Agglomeration elasticities and firm heterogeneity," Journal of Urban Economics, Elsevier, vol. 75(C), pages 44-56.

    More about this item

    Keywords

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    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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