Wage and productivity dispersion in United States manufacturing: The role of computer investment

Timothy Dunne, Lucia Foster, John Haltiwanger, Kenneth R. Troske

Research output: Contribution to journalArticlepeer-review

131 Scopus citations

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.

Original languageEnglish
Pages (from-to)397-429
Number of pages33
JournalJournal of Labor Economics
Volume22
Issue number2
DOIs
StatePublished - Apr 2004

ASJC Scopus subject areas

  • Industrial relations
  • Economics and Econometrics

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