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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Timothy Dunne & Lucia Foster & John Haltiwanger & Kenneth R. Troske, 2004. "Wage and Productivity Dispersion in United States Manufacturing: The Role of Computer Investment," Journal of Labor Economics, University of Chicago Press, vol. 22(2), pages 397-430, April.
  • Handle: RePEc:ucp:jlabec:v:22:y:2004:i:2:p:397-430
    DOI: 10.1086/381255
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    References listed on IDEAS

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