Silva, Rui C.2021-01-042021-01-042021-060022-1090PURE: 26690682PURE UUID: 425ce69c-3abf-4571-966d-e3f7530338a9Scopus: 85085922800http://hdl.handle.net/10362/109730I document wage convergence in conglomerates using detailed plant-level data: workers in low-wage industries collect higher-than-industry wages when the diversified firm also operates in high-wage industries. I confirm this effect by exploiting the implementation of NAFTA and changes in minimum wages at the state-level as sources of exogenous increases in wages in some plants. I then track the evolution of wages of the remaining workers of the firm, relative to workers of unaffiliated plants. Plants where workers collect higher-than-industry wages operate with higher capital intensity, suggesting that internal labor markets may affect investment decisions in internal capital markets.510872engAccountingFinanceEconomics and Econometricsjournal article10.1017/S0022109020000277https://www.scopus.com/pages/publications/85085922800