Please use this identifier to cite or link to this item:
Full metadata record
DC FieldValueLanguage
dc.contributor.authorCarlsson, Mikaelen_US
dc.contributor.authorMessina, Juliánen_US
dc.contributor.authorNordström Skans, Oskaren_US
dc.description.abstractWe study how workers' wages respond to TFP-driven innovations in firms' labor productivity. Using unique data with highly reliable firm-level output prices and quantities in the manufacturing sector in Sweden, we are able to derive measures of physical (as opposed to revenue) TFP to instrument labor productivity in the wage equations. We find that the reaction of wages to sectoral labor productivity is almost three times lager than the response to pure idiosyncratic (firm-level) shocks, a result which crucially hinges on the use of physical TFP as an instrument. These results are all robust to a number of empirical specifications, including models accounting for selection on both the demand and supply side through worker-firm (match) fixed effects. Further results suggest that technological progress at the firm level has negligible effects on the firm-level composition of employees.en_US
dc.publisher|aInst. for Labour Market Policy Evaluation |cUppsalaen_US
dc.relation.ispartofseries|aWorking paper // IFAU - Institute for Labour Market Policy Evaluation |x2011en_US
dc.titleWage adjustment and productivity shocksen_US
dc.typeWorking Paperen_US

Files in This Item:
457.39 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.