Carlsson, Mikael; Messina, Julián; Nordström Skans, Oskar - Institut zur Zukunft der Arbeit <Bonn> - 2011
We study how workers’ wages respond to TFP-driven innovations in firms’ labor productivity.Using unique data with … of physical (as opposed torevenue) TFP to instrument labor productivity in the wage equations. We find that thereaction … of wages to sectoral labor productivity is almost three times larger than the responseto pure idiosyncratic (firm …