Template-Type: ReDIF-Paper 1.0
Author-Name: David C. Maré
Author-X-Name-First: David C.	
Author-X-Name-Last: Maré
Author-Email: dave.mare@motu.org.nz
Author-Workplace-Name: Motu Economic and Public Policy Research
Author-Name: Richard Fabling
Author-X-Name-First: Richard	
Author-X-Name-Last: Fabling
Author-Email: richard.fabling@rbnz.govt.nz
Author-Workplace-Name: Reserve Bank of New Zealand
Title: Productivity and Local Workforce Composition
Abstract:  This chapter examines the link between firm productivity and the population composition of the areas in which firms operate. We combine annual firm-level microdata on production, covering a large proportion of the New Zealand economy, with area-level workforce characteristics obtained from population censuses. Overall, the results support the existence of agglomeration effects that operate through labour markets. We find evidence of productive spillovers from operating in areas with high-skilled workers, and with high population density. A high-skilled local workforce benefits firms in high-skilled and high-research and development industries, and small firms. The benefits of local population density are strongest for firms in dense areas, and for small and new firms. Firms providing local services are more productive in areas with high shares of migrants and new entrants, consistent with local demand factors.
Length: 27 pages
Creation-Date:  2011-05
File-URL: https://motu-www.motu.org.nz/wpapers/11_10.pdf
Number: 11_10
Classification-JEL: R1, R3, D24
Keywords: productivity, agglomeration, workforce composition
Handle: RePEc:mtu:wpaper:11_10