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Firm productivity and ethnic wages

Author

Listed:
  • David C. Maré

    (Motu Economic and Public Policy Research)

  • Richard Fabling

    (Motu Economic and Public Policy Research)

Abstract

We estimate relative wage discrimination for ethnic and migrant groups in New Zealand, using linked employer-employee and firm-level productivity data, and comparing each group's contribution to output with their share of their firm's wage bill. We find that wage discrimination is relatively favourable for European migrants and Asian/MELAA employees, and relatively unfavourable for Māori, Pacific, and NZ-born European employees, with variation across NZ-born, recent migrants, and longer-term migrants. We present pooled and firm-fixed effects estimates of discrimination, highlighting distinct within-firm and between-firm patterns.

Suggested Citation

  • David C. Maré & Richard Fabling, 2025. "Firm productivity and ethnic wages," Motu Working Papers 25_08, Motu Economic and Public Policy Research.
    • Handle: RePEc:mtu:wpaper:25_08
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    References listed on IDEAS

    as
    1. Stephan Kampelmann & François Rycx, 2016. "Wage discrimination against immigrants: measurement with firm-level productivity data," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-24, December.
    2. François Rycx & Stephan Kampelmann, 2016. "Wage Discrimination against Foreigners. Measurement with Firm-level Productivity Data," ULB Institutional Repository 2013/245651, ULB -- Universite Libre de Bruxelles.
    3. Maré, David C. & Benison, Thomas, 2025. "Ethnic Wage Differences in Aotearoa New Zealand," IZA Discussion Papers 18275, IZA Network @ LISER.
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    6. Fabling, Richard & Maré, David C. & Stevens, Philip, 2022. "Migration and Firm-Level Productivity," IZA Discussion Papers 15482, IZA Network @ LISER.
    7. Isabelle Sin & Steven Stillman & Richard Fabling, 2022. "What Drives the Gender Wage Gap? Examining the Roles of Sorting, Productivity Differences, Bargaining, and Discrimination," The Review of Economics and Statistics, MIT Press, vol. 104(4), pages 636-651, October.
    8. Cristian Bartolucci, 2014. "Understanding the Native–Immigrant Wage Gap Using Matched Employer-Employee Data," ILR Review, Cornell University, ILR School, vol. 67(4), pages 1166-1202, October.
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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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