Table 1 Wage effects.

Models (1) to (3) show regression analyses of log10(wage) on co-worker synergy and substitutability, and model (4) also controls for a fourth-order polynomial of age, educational levels, and log10(establishment size). All models contain year dummies. Model (4) implies that an increase from the 10th to 90th synergy percentile—a shift comparable to the shift in the educational distribution from primary school to college education—is associated with an increase in wages of 18.1%, whereas the same increase in co-worker substitutability is associated with a decrease in wages of 4.8%.

Dependent variable: log(wage)
(1)(2)(3)(4)
Co-worker synergy0.126***0.371***0.274***
(0.0025)(0.0036)(0.0030)
Co-worker
substitutability
−0.061***−0.211***−0.044***
(0.0015)(0.0021)(0.0018)
Log(establishment
size)
0.044***
(0.0003)
Fourth polynomial
of age?
Yes
Educational level
dummies?
Yes
R20.0400.0380.0600.300
# Observations2,144,9652,144,9652,144,9652,144,965
# Clusters364,642364,642364,642364,642

***P < 0.01; **P < 0.05; *P < 0.1, SEs clustered at worker level.