Arbeitspapier

Worker productivity and wages: Evidence from linked employer-employee data

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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%.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 7036

Classification
Wirtschaft
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
Wage Level and Structure; Wage Differentials
Subject
worker productivity
wages
human capital
LEED
Arbeitsproduktivität
Lohnstruktur
Humankapital
Schätzung
Portugal

Event
Geistige Schöpfung
(who)
Lopes, Ana Sofia
Teixeira, Paulino
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2012

Handle
Last update
10.03.2025, 11:42 AM CET

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Object type

  • Arbeitspapier

Associated

  • Lopes, Ana Sofia
  • Teixeira, Paulino
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2012

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