Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/205566
Authors: 
Law, David
McLellan, Nathan
Year of Publication: 
2005
Series/Report no.: 
New Zealand Treasury Working Paper No. 05/01
Publisher: 
New Zealand Government, The Treasury, Wellington
Abstract: 
This paper evaluates the contributions from firm entry, exit and continuation to labour productivity growth in New Zealand over the period 1995 to 2003. Decomposition techniques developed by Griliches and Regev (1995) and by Foster, Haltiwanger and Krizan (1998) are employed. Results suggest significant heterogeneity across both industries and firms. Most entering firms' initial level of labour productivity is below the industry average but grows rapidly thereafter. Continuing firms generally add to industry labour productivity growth. On average exiting firms experience stagnant or declining labour productivity in the years leading up to their death, and when they eventually die most have below average labour productivity compared to their industry. This pattern persists even at a highly disaggregated industry level and indicates that firm turnover has positively contributed to labour productivity growth in New Zealand.
Subjects: 
Firm Performance
Entry
Exit
Turnover
Mobility
Labour Productivity
New Zealand
JEL: 
D21
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Working Paper

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