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Wage Adjustment and Productivity Shocks
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics. UCLS; Sveriges Riksbank.ORCID iD: 0000-0002-9535-4404
Office of the Chief Economist for Latin America; Caribbean World Bank.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2016 (English)In: Economic Journal, ISSN 0013-0133, E-ISSN 1468-0297, Vol. 126, no 595, 1739-1773 p.Article in journal (Refereed) Published
Abstract [en]

We study how workers’ wages respond to changes in firm-level physical productivity using Swedish data. We find that technology shocks affect workers’ wages through both internal and external forces. Wages respond three times as much to physical productivity shocks that are shared with outside firms within the same sector as they do to firm-level physical productivity shocks. The larger impact of sectoral physical productivity is related to the degree of within-sector labour mobility, suggesting that the productivity evolution among firms that draw their labour from the same market segment is a crucial determinant of the wage growth of incumbent workers.

Place, publisher, year, edition, pages
John Wiley & Sons, 2016. Vol. 126, no 595, 1739-1773 p.
Keyword [en]
Wage formation, Productivity
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:uu:diva-285253DOI: 10.1111/ecoj.12214ISI: 000388585900004OAI: oai:DiVA.org:uu-285253DiVA: diva2:921158
Funder
Ragnar Söderbergs stiftelse, E52/13
Available from: 2016-04-19 Created: 2016-04-19 Last updated: 2017-11-30Bibliographically approved

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Carlsson, Mikael

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