of wages. Our model accounts for endogenous participation and mobility decisions. We find that firm-specific permanent … productivity shocks transmit to individual wages, but the effect is mostly concentrated among the high-skilled workers; firm …

of wages. Our model accounts for endogenous participation and mobility decisions. We find that firm-specific permanent … productivity shocks transmit to individual wages, but the effect is mostly concentrated among the high-skilled workers. For low … one-third higher relative to a scenario with no pass-through of firm shocks onto wages. …