Casual empiricism suggests that unwarrantedʺ wage changes, defined as the part of wage growth that is not explained by changes in labour productivity, are negatively associated with the return on capital. The main point of this paper is to show that unwarrantedʺ wage changes have no causal...

Attention-grabbing stock markets result in workers’ decreased productivity, even if they may not actively trade stocks. Combining individual worker output data from personnel records with stock market data, we find workers’ output is negatively associated with market overnight returns. The...