Pay in Māori-led firms

This study examines whether working in a Māori-led firm contributes to the earnings of Māori employees.

It uses administrative data for 2005-2020 to identify Māori-led firms, based on the ethnicity and descent of working proprietors, and using an improved method of measuring descent.

Almost 8% of Māori employees work in Māori-led firms.

Controlling for firm and worker characteristics, we find that Māori-led firms have slightly lower than average multi-factor productivity and wage levels.

The wage effects for Māori of working in a Māori-led firm are small but there is some evidence to suggest that moving between Māori-led firms contributes to wage growth for wāhine Māori, and that in Māori-led firms there is stronger pass-through of firm performance to earnings levels for tāne Māori.

DOI - doi.org/10.29310/WP.2024.05 

Citation

Fabling, Richard and Dave Maré, 2024. "Pay in Māori-led firms.” Motu Working Paper 24-05. Motu Economic and Public Policy Research. Wellington, New Zealand.