Employees' wages are directly influenced by their employer's demand for products, rather than competition in the job market. A study on Portuguese exporters showed that when firms experienced a 10% change in output due to demand shocks, wages of existing employees changed by 1.5% accordingly. This effect was more pronounced in industries with lower turnover rates and in firms with higher pay rates. This suggests that differences in how firms operate can lead to variations in wages, especially in less flexible job markets.