-neutral technology on hours worked, productivity and wages in a novel structural vector error correction framework identified by non …, productivity and wages. Structural inequality shocks also have a negative impact on hours worked, but additionally reduce … productivity. We find relevant effects of inequality both above and below the median wage. …

firm heterogeneity to wage inequality. Inspired by sorting theory, we infer firm productivity from estimating firm …-level production functions, taking into account that worker ability and firm productivity may interact at the match level. Using German …, driven by new matches between low-productivity firms and low-ability workers. At the top, sorting decreases, reflected in …