29 May 2015
Download [367 KB PDF]This paper uses a cohort approach to examine firm dynamics and employment growth in New Zealand. Consistent with overseas evidence, we find a large degree of churn in the economy, with many new, mostly small, firms being created each year. Many of these firms disappear relatively quickly, but those that manage to survive experience reasonable employment growth on average. However, much of this “on average” growth is driven by a very small number of firms with high employment growth. Indeed, we find that while the smallest firms play a relatively large role in accounting for net job creation, this growth involves just a modest proportion of the smallest firms, while the majority of these firms do not grow much at all.
Our research aims to understand New Zealand's productivity performance and the role of policy in lifting productivity.
Explore our publications below, hear us present at an event or contact us with your productivity questions.
The goal of our research is to facilitate a move from an economy that grows by using more “inputs” (such as labour or natural resources), to one where productivity plays a greater role in driving economic growth – essentially, working smarter, with greater financial and knowledge capital employed per worker.
Our research explores a wide range of productivity issues: employment, firm dynamics, technology diffusion, innovation, regional development, spatial and public-sector productivity.
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