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Wage and Productivity Dispersion in United States Manufacturing: The Role of Computer Investment

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Author Info
Timothy Dunne (University of Oklahoma)
Lucia Foster (U.S. Bureau of the Census)
John Haltiwanger (University of Maryland)
Kenneth R. Troske (University of Missouri-Columbia)

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Abstract

Using establishment-level data, we shed light on the sources of the changes in the structure of production, wages, and employment that have occurred over recent decades. Our findings are: (1) the between-plant component of wage dispersion is an important and growing part of total wage dispersion; (2) much of the between-plant increase in wage dispersion is within industries; (3) the between-plant measures of wage and productivity dispersion have increased substantially over recent decades; and (4) a significant fraction of the rising dispersion in wages and productivity is accounted for by changes in the distribution of computer investment across plants.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 22 (2004)
Issue (Month): 2 (April)
Pages: 397-430
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Handle: RePEc:ucp:jlabec:v:22:y:2004:i:2:p:397-430

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  1. Hipolito , Simon, 2008. "International Differences in Wage Inequality: A New Glance with European Matched Employer-Employee Data," MPRA Paper 7932, University Library of Munich, Germany. [Downloadable!]
  2. Nordström Skans, Oskar & Edin, Per-Anders & Holmlund, Bertil, 2006. "Wage dispersion between and within plants: Sweden 1985-2000," Working Paper Series 2006:9, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
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  3. Hyunbae Chun & Jung-Wook Kim & Jason Lee & Randall Morck, 2004. "Patterns of Comovement: The Role of Information Technology in the U.S. Economy," NBER Working Papers 10937, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Elisabetta Croci Angelini & Francesco Farina, 2007. "Technological choices under institutional constraints: measuring the impact on earnings dispersion," Department of Economic Policy, Finance and Development (DEPFID) University of Siena 006, Department of Economic Policy, Finance and Development (DEPFID), University of Siena. [Downloadable!]
  5. Müller, Bettina, 2008. "Matching of Individuals for Start-Ups: A Test of the O-Ring Theory," ZEW Discussion Papers 08-112, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  6. David Greenaway & Joakim Gullstrand & Richard Kneller, 2009. "Live or Let Die? Alternative Routes to Industry Exit," Open Economies Review, Springer, vol. 20(3), pages 317-337, July. [Downloadable!] (restricted)
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  7. Tomer Blumkin & Yossi Hadar & Eran Yashiv, 2009. "The Macroeconomic Role of Unemployment Compensation," CEP Discussion Papers dp0909, Centre for Economic Performance, LSE. [Downloadable!]
  8. Yu, Li & Orazem, Peter, 2008. "Human Capital, Complex Technologies, Firm size and Wages: A Test of the O-Ring Production Hypotheses," Staff General Research Papers 12992, Iowa State University, Department of Economics. [Downloadable!]
  9. Kuku, Yemisi & Orazem, Peter F. & Singh, Rajesh, 2004. "Computer Adoption and Returns in Transition," IZA Discussion Papers 1360, Institute for the Study of Labor (IZA). [Downloadable!]
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  10. Yu, Li & Hurley, Terrance M & Kliebenstein, James & Orazem, Peter, 2008. "Firm Size, Technical Change And Wages In The Pork Sector, 1990 -2005," Staff General Research Papers 12921, Iowa State University, Department of Economics. [Downloadable!]
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