Firm Productivity, Wages, and Sorting
Bibliographic Data
| ID | 21557641 |
|---|---|
| Authors | Benjamin Lochner (0000-0001-6210-3097, IZA - Institute of Labor Economics), Bastian Schulz (0000-0002-2493-0865, Aarhus University) |
| Year | 2024 |
| Volume | 42 |
| Issue | 1 |
| Pages | 85-119 |
| Publication date | 2024-01-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Labor Economics (JOURNAL) |
| Journal identifiers | ISSN: 0734-306X • E-ISSN: 1537-5307 |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/722564 |
| OpenAlex | W3114977484 |
| Language | EN |
| Citations received | 3 |
| References cited | 37 |
We study the link between firm productivity and the wages that firms pay. Guided by a search-matching model with large firms, worker and firm heterogeneity, and production complementarities, we infer firm productivity by estimating firm-level production functions. Using German data, we find that the most productive firms do not pay the highest wages. Worker transitions from high- to medium-productivity firms are on average associated with wage gains. Productivity sorting—that is, the sorting of high-ability workers into high-productivity firms—is less pronounced than the sorting into high-wage firms
Economics · Efficiency wage · Labour economics · Macroeconomics · Productivity · Sorting · Wage · Firm Innovation and Growth · Global trade and economics · Labor market dynamics and wage inequality · Mathematics
Workplace Heterogeneity and the Rise of West German Wage Inequality
Wage Differentials, Employer Size, and Unemployment
Revisiting the German Wage Structure
Identification Properties of Recent Production Function Estimators
High Wage Workers and High Wage Firms
Equilibrium Wage Dispersion with Worker and Employer Heterogeneity
Estimating Production Functions Using Inputs to Control for Unobservables
The Dynamics of Productivity in the Telecommunications Equipment Industry
Heterogeneous Firms or Heterogeneous Workers? Implications for Exporter Premiums and the Gains from Trade
The Assignment of Workers to Jobs in an Economy with Coordination Frictions
Insurance within the Firm
Firm Wage Differentials and Labor Market Sorting
A Theory of Marriage
| Citations per year | 0.6 |
|---|---|
| Citation span | 2021 - 2025 (5) |
| Highly cited | No |