| 1 | A | B | C | D | E | F | G | H | I |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2 | correlation estimates between the firm-level earnings dispersion and the productivity dispersion |  |  |  |  |  |  |  |  |
| 3 | productivity dispersion | earnings dispersion |  |  |  |  |  |  |  |
| 4 |  | p90-p10 | p90-p50 | p50-p10 | variance | p90-p10 | p90-p50 | p50-p10 | variance |
| 5 |  | column 1 | column 2 | column 3 | column 4 | column 5 | column 6 | column 7 | column 8 |
| 6 | lp |  |  |  |  |  |  |  |  |
| 7 | coefficient | 0.116 | .. | .. | .. | .. | .. | .. | .. |
| 8 | standard error | 0.009 | .. | .. | .. | .. | .. | .. | .. |
| 9 | lp |  |  |  |  |  |  |  |  |
| 10 | coefficient | .. | 0.088 | .. | .. | .. | .. | .. | .. |
| 11 | standard error | .. | 0.011 | .. | .. | .. | .. | .. | .. |
| 12 | lp |  |  |  |  |  |  |  |  |
| 13 | coefficient | .. | .. | 0.143 | .. | .. | .. | .. | .. |
| 14 | standard error | .. | .. | 0.035 | .. | .. | .. | .. | .. |
| 15 | variance |  |  |  |  |  |  |  |  |
| 16 | coefficient | .. | .. | .. | 0.107 | .. | .. | .. | .. |
| 17 | standard error | .. | .. | .. | 0.014 | .. | .. | .. | .. |
| 18 | mfp |  |  |  |  |  |  |  |  |
| 19 | coefficient | .. | .. | .. | .. | 0.035 | .. | .. | .. |
| 20 | standard error | .. | .. | .. | .. | 0.042 | .. | .. | .. |
| 21 | mfp |  |  |  |  |  |  |  |  |
| 22 | coefficient | .. | .. | .. | .. | .. | -0.044 | .. | .. |
| 23 | standard error | .. | .. | .. | .. | .. | 0.029 | .. | .. |
| 24 | mfp |  |  |  |  |  |  |  |  |
| 25 | coefficient | .. | .. | .. | .. | .. | .. | 0.166 | .. |
| 26 | standard error | .. | .. | .. | .. | .. | .. | 0.100 | .. |
| 27 | variance |  |  |  |  |  |  |  |  |
| 28 | coefficient | .. | .. | .. | .. | .. | .. | .. | 0.041 |
| 29 | standard error | .. | .. | .. | .. | .. | .. | .. | 0.026 |
| 30 | year fixed effect | yes | yes | yes | yes | yes | yes | yes | yes |
| 31 | sector fixed effect | yes | yes | yes | yes | yes | yes | yes | yes |
| 32 | number of observations | 1,209 | 1,209 | 1,209 | 1,209 | 1,209 | 1,209 | 1,209 | 1,209 |
| 33 | r-squared | 0.954 | 0.913 | 0.912 | 0.955 | 0.945 | 0.907 | 0.896 | 0.952 |

Question: what was the percentage of increase in the earnings dispersion of the estimated coefficient suggests that an increase of 1% in the dispersion of lp?
Answer: 0.116

Question: what was the correlation coefficient, which is only slightly smaller than the earnings dispersion measure?
Answer: 0.107