Carlsson, Mikael; Messina, Julián; Nordström Skans, Oskar - 2011
We 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 …