It is standard in the literature on training to use wages as a sufficient statistic for productivity. But there are … many reasons why wages and productivity may diverge. This paper is part of a smaller literature on the effects of work …-related training on direct measures of productivity. We construct a panel of British industries between 1983 and 1996 containing …

This paper studies how firm heterogeneity in terms of productivity affects the balance between agglomeration and … mark-ups. It shows that firm heterogeneity matters. However, whether it shifts the balance from agglomeration to dispersion … 'evenness'. Accordingly, the role of firm heterogeneity in selection models of agglomeration cannot be fully understood without …

This paper develops a quantitative model of city structure to separate agglomeration forces, dispersion forces and … stochastic shocks to worker productivity, which yield a gravity equation for commuting flows. To empirically disentangle …

Empirical studies consistently report that labour productivity and TFP rise with city size. The reason is that cities … agglomeration economies. This paper provides a microeconomically founded model of vertical city differentiation in which the latter … two mechanisms (`agglomeration' and `selection') operate simultaneously. Our model is both rich and tractable enough to …

We show in the framework of a new economic geography model that when labor is heterogenous and productivity depends on … the quality of the match between job and worker, trade liberalization may lead to industrial agglomeration and inter …-industry trade. The agglomeration force is the improvement in the quality of matches when firms recruit from a bigger pool of labor …

states we show that thicker urban labour markets are associated with moreassortative matching between workers and firms …. Another critical condition is required for this to generatehigher productivity: complementarity of worker and firm quality in … the production function. Usingestablishment level productivity regressions, we show that such complementarity is found in …

firms with different levels of productivity. A common problem is that most firm level dataset do not contain information on … output prices of firms which makes it difficult to distinguish between productivity differences and differences in market … power between firms. This paper develops a new econometric framework that allows estimating both firm specific productivity …

A startling fact of firm level productivity analysis is the large and persistent differences in both labour … productivity and total factor productivity (TFP) between firms in narrowly defined sectoral classes. The competitiveness of an … industry is potentially an important factor explaining this productivity dispersion. The degree of competition has also …