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Mergulhão, A. & Pereira, J. A. (2019). Productivity-wage nexus: distributional approach on firms in Portugal. GPEARI Working Papers.

A. P. Mergulhão and J. C. Pereira,  "Productivity-wage nexus: distributional approach on firms in Portugal", in GPEARI Working Papers, 2019

@unpublished{mergulhão2019_1766538841435,
	author = "Mergulhão, A. and Pereira, J. A.",
	title = "Productivity-wage nexus: distributional approach on firms in Portugal",
	year = "2019",
	url = "https://www.gpeari.gov.pt/documents/35086/48421/Artigo-03-2019-Productivity-Wage-Nexus.pdf/5bf53463-30f5-0e10-392f-af37df484aa8?t=1584988489956"
}

TY  - EJOUR
TI  - Productivity-wage nexus: distributional approach on firms in Portugal
T2  - GPEARI Working Papers
AU  - Mergulhão, A.
AU  - Pereira, J. A.
PY  - 2019
UR  - https://www.gpeari.gov.pt/documents/35086/48421/Artigo-03-2019-Productivity-Wage-Nexus.pdf/5bf53463-30f5-0e10-392f-af37df484aa8?t=1584988489956
AB  - There is a growing international concern about a
slowdown in productivity growth. However, labour
productivity enhancements are important if they
translate into higher generalized living standards.
Using administrative data of firms in Portugal, between
2010 and 2016, we analyse the relationships between
productivity and wages. At odds with neoclassical theory
of marginal product of labour, we find that two thirds of
firms insufficiently raised wages given the growths in
productivity. Employing unconditional quantile
regressions, we investigate some quantifiable
determinants of the productivity-wage gap, at different
parts of the distributions. Most of the documented
dynamics contributed not only to the divergence of
productivity and wages but also to the decoupling
between the two. We argue that labour market
flexibilization intensified segmentation, providing
incentives for non-standard contracts. Both dimensions,
as well as higher board compensations, trade and
training weakened the link. between productivity and
wages.
ER  -