The Distributional Effects of Firm Productivity Changes: Evidence from U.S. Linked Worker-Owner Data

Grant description:

This project will estimate exactly which individuals benefit when firms become more  productive and whether these are the same individuals who bear the costs when firms do poorly. The author will use novel linked worker-owner administrative data from the United States. Specifically, he will use data covering the universe of pass-through firms in the United States to identify each firm’s workers and owners, and measure their total compensation from the firm. He will link these data to quasi-experimental, firm-specific productivity shocks to estimate the distributional effects of productivity changes. This will allow for an understanding of how productivity shocks affect workers and owners in various ways.