Manager pay and pay inequality have increased substantially since the 1980s. Manager pay reflect that managers increase the firm’s productivity which in turn affects market power.
Uniform asymptotic theory for local projections with unknown/infinite lag order. LPs can achieve semiparametric efficiency and support robust IRF inference.
Monopsony power makes productive firms decide to stay small, hurting aggregate productivity. More strongly size-dependent wages in East Germany explain a third of the difference to the West.
New paper by @BachmannRudi, @christianbaye13, Stüber, and Wellschmied
