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Addressing the absence of hours information in linked employer-employee data

Author

Listed:
  • Richard Fabling

    () (Independent Researcher)

  • David C Maré

    () (Motu Economic and Public Policy Research)

Abstract

The availability of tax-based payroll data has proved a blessing to labour and business economists wishing to understand workers, their jobs and their employers. Unfortunately, administrative data do not always include key variables of interest. In the case of New Zealand, linked employer-employee data do not include any information on hours worked. We implement a set of complementary methods to patch this gap, deriving an approximate measure of full-time equivalent labour input. In addition, and more specific to the New Zealand data environment, we describe a method for identifying working proprietors using annual tax-filed information, thus providing a more complete picture of total firm labour input.

Suggested Citation

  • Richard Fabling & David C Maré, 2015. "Addressing the absence of hours information in linked employer-employee data," Working Papers 15_17, Motu Economic and Public Policy Research.
  • Handle: RePEc:mtu:wpaper:15_17
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    File URL: http://motu-www.motu.org.nz/wpapers/15_17.pdf
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    References listed on IDEAS

    as
    1. David C. Maré & Dean R. Hyslop & Richard Fabling, 2017. "Firm productivity growth and skill," New Zealand Economic Papers, Taylor & Francis Journals, vol. 51(3), pages 302-326, September.
    2. Richard Fabling, 2009. "A Rough Guide to New Zealand's Longitudinal Business Database," Global COE Hi-Stat Discussion Paper Series gd09-103, Institute of Economic Research, Hitotsubashi University.
    3. David C Mare & Lynda Sanderson & Richard Fabling, 2014. "Earnings and Employment in Foreign-owned Firms," Treasury Working Paper Series 14/16, New Zealand Treasury.
    4. Maré, David C & Fabling, Richard, 2013. "The incidence and persistence of cyclical job loss in New Zealand," Working Papers 13_08, Motu Economic and Public Policy Research.
    5. Richard Fabling & Lynda Sanderson, 2014. "Productivity distributions in New Zealand: The dangers of international comparison," Working Papers 14_16, Motu Economic and Public Policy Research.
    6. Richard Fabling, 2011. "Keeping it Together: Tracking Firms on New Zealand’s Longitudinal Business Database," Working Papers 11_01, Motu Economic and Public Policy Research.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. David C. Maré, 2016. "Urban Productivity Estimation with Heterogeneous Prices and Labour," Working Papers 16_21, Motu Economic and Public Policy Research.
    2. Richard Fabling & David C Maré, 2015. "Production function estimation using New Zealand’s Longitudinal Business Database," Working Papers 15_15, Motu Economic and Public Policy Research.
    3. Richard Fabling & Lynda Sanderson, 2016. "A Rough Guide to New Zealand's Longitudinal Business Database (2nd edition)," Working Papers 16_03, Motu Economic and Public Policy Research.
    4. David C. Maré & Richard Fabling, 2019. "Competition and productivity: Do commonly used metrics suggest a relationship?," Working Papers 19_16, Motu Economic and Public Policy Research.
    5. Richard Fabling & Arthur Grimes, 2019. "Ultra-fast broadband, skill complementarities, gender and wages," Working Papers 19_23, Motu Economic and Public Policy Research.
    6. Isabelle Sin & Bronwyn Bruce-Brand, 2019. "Is the pay of medical specialists in New Zealand gender biased?," Working Papers 19_21, Motu Economic and Public Policy Research.
    7. David C. Maré & Dean R. Hyslop & Richard Fabling, 2017. "Firm productivity growth and skill," New Zealand Economic Papers, Taylor & Francis Journals, vol. 51(3), pages 302-326, September.
    8. Richard Fabling & Arthur Grimes, 2016. "Picking up speed: Does ultrafast broadband increase firm productivity?," Working Papers 16_22, Motu Economic and Public Policy Research.
    9. Nathan Chappell & Adam B. Jaffe & Trinh Le, 2018. "Worker Flows, Entry and Productivity in the New Zealand Construction Industry," NBER Working Papers 24376, National Bureau of Economic Research, Inc.
    10. Richard Fabling, 2018. "Entrepreneurial beginnings: Transitions to self-employment and the creation of jobs," Working Papers 18_12, Motu Economic and Public Policy Research.
    11. Nathan Chappell & Adam Jaffe, 2018. "Intangible Investment and Firm Performance," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 52(4), pages 509-559, June.
    12. David C Maré & Trinh Le & Richard Fabling & Nathan Chappell, 2017. "Productivity and the Allocation of Skills," Working Papers 17_04, Motu Economic and Public Policy Research.
    13. Isabelle Sin & Steven Stillman & Richard Fabling, 2017. "What drives the gender wage gap? Examining the roles of sorting, productivity differences, and discrimination," Working Papers 17_15, Motu Economic and Public Policy Research.
    14. Richard Fabling & Lynda Sanderson, 2014. "Productivity distributions in New Zealand: The dangers of international comparison," Working Papers 14_16, Motu Economic and Public Policy Research.
    15. Richard Fabling & David C. Maré, 2019. "Improved productivity measurement in New Zealand's Longitudinal Business Database," Working Papers 19_03, Motu Economic and Public Policy Research.
    16. Lynn Riggs & Isabelle Sin & Dean Hyslop, 2019. "Measuring the “gig” economy: Challenges and options," Working Papers 19_18, Motu Economic and Public Policy Research.

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    More about this item

    Keywords

    Linked employer-employee tax data; measuring labour input; full-time equivalent; working proprietors;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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