Permanent Scars: The Effects of Wages on Productivity

Claudia Fontanari, Antonella Palumbo Τhis paper explores how stagnating real wages may have contributed to the slowdown of US productivity. Through shift-share analysis, we find that after a sharp change in distribution against wages, some historically high-productivity sectors (like manufacturing) switched towards slower productivity growth. This supports our hypothesis that the anemic growth of productivity […]