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 … of physical (as opposed to revenue) TFP to instrument labor productivity in the wage equations. We find that the reaction … of wages to sectoral labor productivity is almost three times larger than the response to pure idiosyncratic (firm …