discuss some implications of the big shift for pay, productivity, and the pace of innovation. Over the next five years, U …

values of the standard Solow productivity residual. The equivalence holds if the representative household maximizes utility …

firms earn higher pay at all earnings levels. Second, this pay-productivity relationship strengthens with seniority …, doubling from an elasticity of 0.07 for pay on productivity for the median-paid employee to 0.15 for the top-paid employee … rising productivity can explain 40% of the rise in within-firm inequality since 1980 …