Shishir Shakya’s “Spatial Spillovers and the Productivity-Compensation Gap in the United States” paper has been published in The Annals of Regional Science. This paper examines the puzzling gap between productivity and compensation in the US. The authors hypothesize that the observed gap can be misleading because productivity spillovers only partially translate into increased compensation. Authors analyzed productivity spillovers with a spatial dimension, such that the industrial productivity of one state spills over to that of contiguous states. Once authors account for productivity spillovers within industries, the gap between labor compensation and productivity narrows significantly.