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

Timothy Dunne¹; Lucia Foster²; John Haltiwanger³; Kenneth R. Troske⁴

¹ University of Oklahoma · ² United States Census Bureau · ³ University of Maryland, College Park · ⁴ University of Missouri

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.

DOI

10.1086/381255

Volume

22 (2)

Pages

397-429

Language

en

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BibTeX

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