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May 2008

Wage and productivity stability in U.S. manufacturing plants

Edith A. Wiarda, Daniel D. Luria, Kristin M. Dziczek, Mark C. Long

Wages and productivity were substantially dispersed across all manufacturing plants in 1987, but the dispersion narrowed modestly from then until 1997; the connection between a plant’s level of productivity and its hourly wages weakened over the same period, and many plants exhibited substantial movements within the relative wage and productivity distributions.

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