Template-Type: ReDIF-Paper 1.0
Author-Name: David C Maré
Author-X-Name-First: David
Author-X-Name-Last: Maré
Author-Email: dave.mare@motu.org.nz
Author-Workplace-Name: Motu Economic and Public Policy Research
Author-Name: Trinh Le
Author-X-Name-First: Trinh
Author-X-Name-Last: Le
Author-Email: trinh.le@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@xtra.co.nz
Author-Workplace-Name: Independent Researcher
Author-Name: Nathan Chappell
Author-X-Name-First: Nathan
Author-X-Name-Last: Chappell
Author-Email: nathan.chappell@motu.org.nz
Author-Workplace-Name: Motu Economic and Public Policy Research
Title: Productivity and the Allocation of Skills
Abstract: We use linked employer-employee data from 2004–2012, combined with individual qualifications data from 1994–2012, to study how graduates with different skills fare in the labour market in the six years after studying. We find that graduates experience improvements in earnings, and that they systematically move between jobs, industries and locations in a pattern that is consistent with their securing better job matches, particularly for high level STEM graduates. We then estimate joint production function and wage equations to see how the skill composition of a firm’s employees correlates with productivity, and compare this with how the skill composition correlates with its wage bill. Our results suggest that degree graduates make a growing positive contribution to production in the six years after graduation, with associated wage growth. There is variation in relative productivity and wages across groups of graduates that differ by field of study and level of qualification.
Length: 45 pages
Creation-Date: 2017-04
File-URL: https://motu-www.motu.org.nz/wpapers/17_04.pdf
Number: 17_04
Classification-JEL: D29, J24
Keywords: Firm productivity, linked employer-employee data, skill matching, STEM 
Handle: RePEc:mtu:wpaper:17_04