The Growing Dispersion of Wages and Productivity in OECD countries

Giuseppe Berlingieri, Patrick Blanchenay, and Chiara Criscuolo at VoxEU:

Great Divergences: The growing dispersion of wages and productivity in OECD countries: Summary Some firms pay well while others don’t; and some are highly productive while many aren’t. This column presents new firm-level data on the increasing dispersion of wages and productivity in both the manufacturing and services sectors in 16 OECD countries. Wage inequalities are growing between firms, even those operating in the same sector – and they are linked to growing differences between high and low productivity firms. Both globalisation and technological progress (notably information and communications technologies) influence these outcomes – as do policies and institutions such as minimum wages, employment protection legislation, unions, and processes of wage-setting.