Chan, Jackie M. L.; Irlacher, Michael; Koch, Michael; … - 2025 - Original version: February 2025, this version: September 2025
This paper identifies product scope as a new determinant of firm-level wage markdowns. Using Danish matched employer-employee data, we document a negative elasticity between wages and scope, which has a similar magnitude to the firm-size wage premium but the opposite sign. Additional empirical...