Du Caju, Philip; Ryckx, François; Tojerow, Ilan - 2009
employer-employee data set covering all the years from 1999 to 2005. Findings show the existence of large wage differentials …, workers earn significantly higher wages when employed in more profitable firms. The time dimension of our matched employer-employee … data allows us to instrument firms' profitability by its lagged value. The instrumented elasticity between wages and …