Turbulent firms, turbulent wages?

Diego Comin, Erica Groshen and Bess Rabin

Journal of Monetary Economics, 2009, vol. 56, issue 1, 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
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (37)

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Related works:
Working Paper: Turbulent firms, turbulent wages? (2006)
Working Paper: Turbulent Firms, Turbulent Wages? (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:moneco:v:56:y:2009:i:1:p:109-133

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