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Inequality of Individual Wages and the Dispersion of Firm Productivity


Many blame globalisation for growing wage inequality in the UK. But according to research by Giulia Faggio, Kjell Salvanes and John Van Reenen, the rise in inequality is better explained by increasing dispersion in the productivity of firms related to their use of new technology.


Giulia Faggio, Kjell Salvanes and John Van Reenen

February 2008     Paper Number CEPCP244

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