Turbulent firms, turbulent wages?

Diego Comin (), Erica Lynn Groshen () and Bess Rabin

Journal of Monetary Economics, 2009, vol. 56, issue 1, pages 109-133

Abstract: Has greater turbulence among firms fueled rising wage instability in the U.S.? We find strong support for the hypothesis that rising turbulence in the sales of large publicly-traded U.S. firms over the past three decades has raised their workers' high-frequency wage volatility. Through controls and instrumental variable probes, we rule out straightforward compositional churning as an explanation for the link between firm sales and wage volatility. We also observe that the relationship between sales and wage volatility at the firm level is stronger since 1980, is present only in large companies and is stronger in services than in manufacturing companies.

Keywords: Transitory; wage; volatility; Firm; volatility; PSID; Turbulence; COMPUSTAT (search for similar items in EconPapers)
Date: 2009

Downloads: (external link)
http://www.sciencedirect.com/science/article/B6VBW ... 6462b77c854b362002b7
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Turbulent Firms, Turbulent Wages? (2006)
Working Paper: Turbulent firms, turbulent wages? (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:eee:moneco:v:56:y:2009:i:1:p:109-133

Access Statistics for this article

Journal of Monetary Economics is edited by R. G. King and C. I. Plosser

More articles in Journal of Monetary Economics from Elsevier
Series data maintained by Heidi Boesdal ().