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The great divergence(s)

Berlingieri, Giuseppe and Blanchenay, Patrick and Criscuolo, Chiara (2017) The great divergence(s). CEP Discussion Papers, CEPDP1488. Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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Identification Number: CEPDP1488

Abstract

This report provides new evidence on the increasing dispersion in wages and productivity using novel micro-aggregated firm-level data from 16 countries. First, the report documents an increase in wage and productivity dispersions, for both manufacturing and market services (excluding the financial sector). Second, it shows that these trends are driven by differences within rather than across sectors, and that the increase in dispersion is mainly driven by the bottom of the distribution, while divergence at the top occurs only in the service sector, and only after 2005. Third, it suggests that between-firm wage dispersion is linked to increasing differences between high and low productivity firms. Fourth, it suggests that both globalisation and digitalisation imply higher wage divergence, but strengthen the link between productivity and wage dispersion. Finally, it offers preliminary analysis of the impact of minimum wage, employment protection legislation, trade union density, and coordination in wage setting on wage dispersion and its link to productivity dispersion.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk/
Additional Information: © 2017 The Authors
Subjects: H Social Sciences > HD Industries. Land use. Labor
Sets: Research centres and groups > Centre for Economic Performance (CEP)
Series: Working Papers > CEP Discussion Papers
Date Deposited: 21 Jul 2017 10:56
Last Modified: 21 Jul 2017 10:56
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/83625

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