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Do Firms Share their Success with Workers? The Response of Wages to Product Market Conditions Author info | Abstract | Publisher info | Download info | Related research | Statistics Marcello Estevao
Stacey Tevlin
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We provide new evidence that industry financial conditions help determine wages in the US manufacturing sector. Ordinary least squares estimates of the effect of rents per worker on wages are significantly positive, but quite small. We show that this may stem from econometric difficulties that plague the OLS estimates. Using the US input-output tables to isolate demand shocks, we overcome these issues and identify the effects of the industry financial situation on wages. Our IV estimates reveal substantial rent sharing-much more than is consistent with a purely competitive labour market. Copyright (c) The London School of Economics and Political Science 2003.
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Article provided by London School of Economics and Political Science in its journal Economica .
Volume (Year): 70 (2003)
Issue (Month): 280 (November)
Pages: 597-617
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Handle: RePEc:bla:econom:v:70:y:2003:i:280:p:597-617Contact details of provider: Postal: Houghton Street, London WC2A 2AE Phone: +44 (020) 7405 7686 Web page: http://www.blackwellpublishing.com/journal.asp?ref=0013-0427 More information through EDIRC
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