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Firm productivity and ethnic wages

Author

Listed:
  • Maré David

    (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 M?ori, 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

  • Maré David & 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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    File URL: https://motu-www.motu.org.nz/wpapers/25_08.pdf
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    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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