{"title":"Productivity spillovers and the productivity–compensation gap","authors":"Shishir Shakya, Alicia Plemmons","doi":"10.1080/17421772.2021.2020889","DOIUrl":null,"url":null,"abstract":"ABSTRACT Historically, compensation and productivity steadily trended synchronously with one another. However, since the mid-1970s, these two measures have diverged as productivity increases have outpaced compensation. This divergence is indicative of evidence of wage stagnation and rising income inequality. We provide arguments on the productivity–compensation gap and illuminate possible explanations about whether and why the gap exists in different industries incorporating spatial and trade networks. We confirm that the gap narrows once we account for productivity spillovers between bordering and trading states using spatially lagged X (SLX) models. The results vary across industries and provide insights for policymakers and firms about productivity and compensation patterns.","PeriodicalId":47008,"journal":{"name":"Spatial Economic Analysis","volume":null,"pages":null},"PeriodicalIF":1.5000,"publicationDate":"2022-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Spatial Economic Analysis","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1080/17421772.2021.2020889","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 2
Abstract
ABSTRACT Historically, compensation and productivity steadily trended synchronously with one another. However, since the mid-1970s, these two measures have diverged as productivity increases have outpaced compensation. This divergence is indicative of evidence of wage stagnation and rising income inequality. We provide arguments on the productivity–compensation gap and illuminate possible explanations about whether and why the gap exists in different industries incorporating spatial and trade networks. We confirm that the gap narrows once we account for productivity spillovers between bordering and trading states using spatially lagged X (SLX) models. The results vary across industries and provide insights for policymakers and firms about productivity and compensation patterns.
期刊介绍：
Spatial Economic Analysis is a pioneering economics journal dedicated to the development of theory and methods in spatial economics, published by two of the world"s leading learned societies in the analysis of spatial economics, the Regional Studies Association and the British and Irish Section of the Regional Science Association International. A spatial perspective has become increasingly relevant to our understanding of economic phenomena, both on the global scale and at the scale of cities and regions. The growth in international trade, the opening up of emerging markets, the restructuring of the world economy along regional lines, and overall strategic and political significance of globalization, have re-emphasised the importance of geographical analysis.
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