our benchmark assumption that industry prices are independent of productivity. When we allow for the endogeneity of …

wages and productivity across establishments. The second is that the increased dispersion in wages and productivity across … productivity dispersion have increased substantially over the last few decades, and (4) a substantial fraction of the rising … dispersion in wages and productivity is accounted for by increasing wage and productivity differentials across high and low …

also affects the real wage of other workers. Counteracting these forces, automation creates a positive productivity effect …, pushing up the price of all factors. Because capital adjusts to keep the interest rate constant, the productivity effect …

, we examine how the productivity of these firms is influenced by their internal wage dispersion. To do so, we use a large … dispersion has a positive and significant effect on firm productivity. This result is robust to controls for individual and firm …

differ in their permanent skill level and firms differ with respect to productivity. Positive (negative) sorting results if … between worker skill and firm productivity is 0.12. The assortative matching has a substantial impact on wage dispersion. We …

&D indicators and measures of labor and total factor productivity, average wage and skill composition, on four panel data samples of … positive correlations with productivity, average wage and the share of administrative managers, as well as negative ones with …