It finds that:
- Overall, the research provides little evidence of a strong relationship effect of increasing productivity at either the firm, sector or local labour market area level on nominal wages in the period 2011 to 2015.
- An increase in firm productivity is associated with an increase in wages, however, the effect is tiny.
- Surprisingly, an increase in sector productivity seems to cause wages to fall. However, this result is driven solely by the business services sector.
- A positive relationship is found in both retail and wholesale trade and construction. In both cases this effect is larger than at the firm level, but the effect is still small.
- In construction, where the largest effect is found, a 10% increase in productivity is estimated to bring about a 1.7% increase in wages.