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Pay in Māori-led firms

Author

Listed:
  • Richard Fabling

    (Motu Economic and Public Policy Research)

  • David Maré

    (Motu Economic and Public Policy Research)

Abstract

This study examines whether working in a Māori-led firm contributes to the earnings of Māori employees. It uses administrative data for 2005-2020 to identify Māori-led firms, based on the ethnicity and descent of working proprietors, and using an improved method of measuring descent. Almost 8% of Māori employees work in Māori-led firms. Controlling for firm and worker characteristics, we find that Māori-led firms have slightly lower than average multi-factor productivity and wage levels. The wage effects for Māori of working in a Māori-led firm are small but there is some evidence to suggest that moving between Māori-led firms contributes to wage growth for wāhine Māori, and that in Māori-led firms there is stronger pass-through of firm performance to earnings levels for tāne Māori.

Suggested Citation

  • Richard Fabling & David Maré, 2024. "Pay in Māori-led firms," Motu Working Papers 24_05, Motu Economic and Public Policy Research.
    • Handle: RePEc:mtu:wpaper:24_05
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    File URL: https://motu-www.motu.org.nz/wpapers/24_05.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. Allan, Corey & Maré, David C., 2022. "Who Benefits from Firm Success? Heterogenous Rent Sharing in New Zealand," IZA Discussion Papers 15264, Institute of Labor Economics (IZA).
    3. Murat GENÇ & Murray SMITH, 2008. "Wage Gaps in the New Zealand Labour Market," EcoMod2008 23800042, EcoMod.
    4. Fabling, Richard, 2018. "Entrepreneurial beginnings: Transitions to selfemployment and the creation of jobs," Motu Working Papers 290499, Motu Economic and Public Policy Research.
    5. repec:adr:anecst:y:2005:i:79-80:p:13 is not listed on IDEAS
    6. Mika, Jason Paul & O'Sullivan, John Gerard, 2014. "A Māori approach to management: Contrasting traditional and modern Māori management practices in Aotearoa New Zealand," Journal of Management & Organization, Cambridge University Press, vol. 20(5), pages 648-670, September.
    7. 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.
    8. Richard Fabling & Lynda Sanderson, 2014. "Productivity distributions in New Zealand: The dangers of international comparison," Motu Working Papers 14_16, Motu Economic and Public Policy Research.
    9. Jason Paul Mika & Nicolas Fahey & Joanne Bensemann, 2019. "What counts as an indigenous enterprise? Evidence from Aotearoa New Zealand," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 13(3), pages 372-390, June.
    10. John M. Abowd & Francis Kramarz, 2010. "Human Capital and Worker Productivity: Direct Evidence from Linked Employer-Employee Data," NBER Chapters, in: Contributions in Memory of Zvi Griliches, pages 323-338, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

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    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets

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