A Good Worker is Hard to Find: The Determinants of Skills Shortages in New Zealand Firms
This paper investigates the determinants of firms’ external skill shortages – that is, vacancies that are hard to fill for skillrelated reasons. This paper utilises a speciallydesigned survey, the Business Strategy and Skills (BSS) module of the Business Operations Survey 2008 (BOS 2008). We estimate the determinants of firms reporting having vacancies and skill shortage in comparison to the nonskillrelated vacancies using probit models and twostage (Heckman) probit models with selection, to enable us to distinguish between those factors related with the firm posting a vacancy and those that make them difficult to fill. We consider a broad suite of variables, including firm’s size and industry, their market focus, R&D investment, innovation, previous performance (e.g. productivity), the degree of competition they are subject to.