Worker productivity and wages: Evidence from linked employer-employee data
This study compares the determinants of productivity and wages at both firm and worker level. In the firm-level analysis, we follow Hellerstein, Neumark and Troske (1999) and provide improved estimates based on an extended set of covariates including the intensity of firm-provided training. In the worker-level analysis we take a new turn and generate a proxy for unobserved worker productivity. Our results point to the presence of sizeable spillover effects from schooling and training as their impact is bigger on firm-level productivity equations than on the corresponding worker-level equations. In turn, our fully disaggregated model at worker level shows that, by using all possible combinations of worker attributes, we obtain that the wage differences across different worker groups are mostly productivity based and that the gap can be as high as 33%.
|Date of creation:||Oct 2012|
|Date of revision:|
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- Hellerstein, Judith K & Neumark, David, 1999.
"Sex, Wages, and Productivity: An Empirical Analysis of Israeli Firm-Level Data,"
International Economic Review,
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- Hellerstein, Judith K & Neumark, David & Troske, Kenneth R, 1999.
"Wages, Productivity, and Worker Characteristics: Evidence from Plant-Level Production Functions and Wage Equations,"
Journal of Labor Economics,
University of Chicago Press, vol. 17(3), pages 409-46, July.
- Judith K. Hellerstein & David Neumark & Kenneth R. Troske, 1996. "Wages, Productivity, and Worker Characteristics: Evidence from Plant-Level Production Functions and Wage Equations," NBER Working Papers 5626, National Bureau of Economic Research, Inc.
- John T. Addison & Paulino Teixeira & Thomas Zwick, 2010.
"German Works Councils and the Anatomy of Wages,"
Cornell University, ILR School, vol. 63(2), pages 247-270, January.
- John T. Addison & Paulino Teixeira & Thomas Zwick, 2008. "German Works Councils and the Anatomy of Wages," Working Paper Series 11-08, The Rimini Centre for Economic Analysis, revised Jan 2008.
- John T. Addison & Paulino Teixeira & Thomas Zwick, 2007. "German Works Councils and The Anatomy of Wages," Working Paper Series 13-07, The Rimini Centre for Economic Analysis, revised Jul 2007.
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