This paper uses linked employee-employer data to examine the frequency with which workers change jobs in New Zealand, wage premiums associated with these job transitions, and the impact of house prices on worker mobility.

Key findings:

Transitions are measured annually (based on March-years) between 2000 and 2018 and show that:

1. On average over a year 61% of workers remain in their jobs, 21% switch jobs, and 18% of workers exit the workforce. Job-to-job transitions are thus an important dimension of the labour market in New Zealand.
2. In relation to the 21% of workers switching jobs, about 5 percentage points involve a change in firm but not region or industry. Of the remaining 16 percentage points, 4 percentage points involve a change in region only, 6 percentage points involve a change in industry only, and 6 percentage points involve a change in both industry and region.