wages are determined by continuous bargaining between the firm and its employees. The model generates a non … facts about the joint distribution of firm size, firm growth, and wages in the U.S. economy. We also conduct a numerical …

advantage in the most complex tasks relative to capital, and because the wages of the least skilled workers are sufficiently low … relative to their productivity and the effective cost of capital in low-complexity tasks. Minimum wages and other sources of … higher wages at the bottom make interior automation less likely. Starting with interior automation, a reduction in the cost …