Gatti, Donatella; Kambayashi, Ryo; Lechevalier, Sebastien - Institute of Economic Research, Hitotsubashi University - 2010
Two stylized facts characterized Japan during the so-called Lost Decade (1992-2005): rising wage inequalities and increasing productivity differentials at the firm level. Surprisingly, these features have never been connected in the literature. This paper attempts to fill this gap by proposing...