Published: 2016
Authors: Adam Jaffe, Trinh Le, Nathan Chappell
Productivity
has risen. Thank entry and
reallocation.
Using firm-level data, this study finds that over the period 2001–2012, labour productivity of the average firm in the construction industry grew by 1.7 percent annually and MFP by 0.5 percent annually, compared with 0.5 and 0.1 percent annually respectively for the overall measured sector.
Within the construction industry, productivity growth rates vary markedly by sub-industry and other firm characteristics. Labour productivity is more widely dispersed than is MFP. High-productivity firms tend to be younger, more likely to be a new start-up, to belong to a business group, and to locate in Auckland than low-productivity firms. Working-proprietor-only firms are slightly less productive on average than employing firms, while displaying more productivity dispersion (both more high productivity firms and more low productivity firms).
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