IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/4023.html
   My bibliography  Save this paper

Firm-Specific Determinants of the Real Wage

Author

Listed:
  • Janet Currie
  • Sheena McConnell

Abstract

Bargaining models suggest that firm-specific variables play an important role in wage determination. Yet previous empirical studies of wage determination have largely ignored these variables. Our analysis of a large panel data set of U.S. wage contracts suggests that firm-specific variables suggested by bargaining models. such as the values of sales. the capital-labor ratio, and the financial liquidity of the firm. are important determinants of negotiated real wages.

Suggested Citation

  • Janet Currie & Sheena McConnell, 1992. "Firm-Specific Determinants of the Real Wage," NBER Working Papers 4023, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:4023
    Note: LS
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w4023.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Unknown, 1967. "Index," 1967 Conference, August 21-30, 1967, Sydney, New South Wales, Australia 209796, International Association of Agricultural Economists.
    2. Card, David, 1988. "Longitudinal Analysis of Strike Activity," Journal of Labor Economics, University of Chicago Press, vol. 6(2), pages 147-176, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. A. R. Cardoso, 2000. "Wage differentials across firms: an application of multilevel modelling," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(4), pages 343-354.
    2. Comin, Diego & Groshen, Erica L. & Rabin, Bess, 2009. "Turbulent firms, turbulent wages?," Journal of Monetary Economics, Elsevier, vol. 56(1), pages 109-133, January.
    3. Maarten Goos & Jozef Konings, 2001. "Does Rent-Sharing Exist in Belgium ?. An Empirical Analysis Using Firm Level Data," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(1), pages 65-79.
    4. Nickell, Stephen, 1999. "Product markets and labour markets1," Labour Economics, Elsevier, vol. 6(1), pages 1-20, March.
    5. John W. Budd & Jozef Konings & Matthew J. Slaughter, "undated". "International Rent Sharing in Multinational Firms," Working Papers 0202, Human Resources and Labor Studies, University of Minnesota (Twin Cities Campus).
    6. Ramzi Benkraiem & Mondher Bouattour & Anthony Miloudi & Ludovic Vigneron, 2017. "Corporate leverage and the terms of employment: evidence from French small businesses before and during the global crisis," Applied Economics, Taylor & Francis Journals, vol. 49(23), pages 2286-2297, May.
    7. Jennifer C. Smith, 1996. "Effet du pouvoir de négociation et du marché local du travail sur la détermination des salaires," Économie et Prévision, Programme National Persée, vol. 126(5), pages 1-17.
    8. S. Dobbelaere, 2003. "Ownership, Firm Size and Rent Sharing in a Transition Country," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/170, Ghent University, Faculty of Economics and Business Administration.
    9. Manning, Alan, 2011. "Imperfect Competition in the Labor Market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 11, pages 973-1041, Elsevier.
    10. John W. Budd & Jozef Konings & Matthew J. Slaughter, 2005. "Wages and International Rent Sharing in Multinational Firms," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 73-84, February.
    11. H. Naci Mocan & Deborah Viola, 1997. "The Determinants of Child Care Workers' Wages and Compensation: Sectoral Differences, Human Capital, Race, Insiders and Outsiders," NBER Working Papers 6328, National Bureau of Economic Research, Inc.
    12. Eric S. Chou & Chien-Lung Chen, 2015. "Can Agents Be Better Off with Pay Caps?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(4), pages 1069-1090, October.
    13. R. Alison Felix & James R. Hines, 2022. "Corporate taxes and union wages in the United States," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(6), pages 1450-1494, December.
    14. John W. Budd & Matthew J.Slaughter, 2000. "Are Profits Shared Across Borders? Evidence on International Rent Sharing," NBER Working Papers 8014, National Bureau of Economic Research, Inc.
    15. Stephen G. Bronars & Melissa Famulari, 2001. "Shareholder Wealth and Wages: Evidence for White-Collar Workers," Journal of Political Economy, University of Chicago Press, vol. 109(2), pages 328-354, April.
    16. Coles, Melvyn & Smith, Eric, 1998. "Strategic bargaining with firm inventories," Journal of Economic Dynamics and Control, Elsevier, vol. 23(1), pages 35-54, September.
    17. Lee, Young, 1999. "Wages and Employment in China's SOEs, 1980-1994: Corporatization, Market Development, and Insider Forces," Journal of Comparative Economics, Elsevier, vol. 27(4), pages 702-729, December.
    18. Dobbelaere, Sabien, 2004. "Ownership, firm size and rent sharing in Bulgaria," Labour Economics, Elsevier, vol. 11(2), pages 165-189, April.
    19. Smith, J.C., 1996. "Bargaining Power and Local Labour Market Influences on Wage Determination," The Warwick Economics Research Paper Series (TWERPS) 455, University of Warwick, Department of Economics.
    20. Alessandra Luzzi & Amir Sasson, 2016. "Individual Entrepreneurial Exit and Earnings in Subsequent Paid Employment," Entrepreneurship Theory and Practice, , vol. 40(2), pages 401-420, March.
    21. Smith, Jennifer C., 1996. "Bargaining power and local labour market in°uences on wage determination," Economic Research Papers 268704, University of Warwick - Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shan, Wei & Qiao, Tong & Zhang, Mingli, 2020. "Getting more resources for better performance: The effect of user-owned resources on the value of user-generated content," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    2. Nakabayashi, Masaki, 2017. "Contained crisis and socialized risk," Research in International Business and Finance, Elsevier, vol. 40(C), pages 231-241.
    3. David Matesanz Gomez & Guillermo J. Ortega & Benno Torgler, 2011. "Measuring globalization: A hierarchical network approach," CREMA Working Paper Series 2011-11, Center for Research in Economics, Management and the Arts (CREMA).
    4. Victor Barros & Joao Tovar Jalles & Joaquim Miranda Sarmento, 2023. "Drivers of the Tax Effort: Evidence from a Large Panel," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 65(1), pages 96-136, March.
    5. Krafft Jackie & Quatraro Francesco & Colombelli Alessandra, 2011. "High Growth Firms and Technological Knowledge: Do gazelles follow exploration or exploitation strategies?," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201114, University of Turin.
    6. Helen Bollaert & Gaël Leboeuf & Armin Schwienbacher, 2020. "The narcissism of crowdfunding entrepreneurs," Small Business Economics, Springer, vol. 55(1), pages 57-76, June.
    7. Carlos Huertas C. & Munir A. Jalil. B., 2000. "Relación Entre El Índice De Precios Del Productor (Ipp) Y El Índice De Precios Al Consumidor (Ipc)," Borradores de Economia 3449, Banco de la Republica.
    8. Quaranta Giovanni & Salvia Rosanna, 2014. "An Index to Measure Rural Diversity in the Light of Rural Resilience and Rural Development Debate," European Countryside, Sciendo, vol. 6(2), pages 1-18, June.
    9. Perkinson, Leon, 1982. "Local Government Employment Trends In Nonmetropolitan Areas- 1957-1977," Department of Economics and Business - Archive 259555, North Carolina State University, Department of Economics.
    10. Molana , Hassan & Rahimi , Abolfazl, 2014. "Should all Iranian Citizens Receive the Same Subsidy Rebate?," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 9(3), pages 1-31, April.
    11. Bradley R. Weinberg, 2020. "Third-Party Intervention and the Preservation of Bargaining Relationships," ILR Review, Cornell University, ILR School, vol. 73(2), pages 498-527, March.
    12. Josefin Meyer & Carmen M Reinhart & Christoph Trebesch, 2022. "Sovereign Bonds Since Waterloo," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 137(3), pages 1615-1680.
    13. Křečková, J. & Rydval, J. & Brožová, H. & Hornická, A., 2017. "Selection of Communication Routes in Agriculture Equipment Company," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 9(4).
    14. Richard Boyce, 1975. "Estimation of Dynamic Gorman Polar Form Utility Functions," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 4, number 1, pages 103-116, National Bureau of Economic Research, Inc.
    15. Janine Aron & John N. J. Muellbauer & Coen Pretorius, 2009. "A Stochastic Estimation Framework For Components Of The South African Consumer Price Index," South African Journal of Economics, Economic Society of South Africa, vol. 77(2), pages 282-313, June.
    16. Charles R. Hulten & Frank Wykoff, 1980. "Economic Depreciation and the Taxation of Structures in United States Manufacturing Industries: An Empirical Analysis," NBER Chapters, in: The Measurement of Capital, pages 83-120, National Bureau of Economic Research, Inc.
    17. Donald G. Paterson & Ronald A. Shearer, 2003. "A history of prices in Canada, 1840–1871: a new wholesale price index," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 36(1), pages 224-253, March.
    18. Vladimir Arkhangel'Skiy & Natalya Dzhanayeva, 2015. "Using Cohort Fertility Indicators to Assess and Predict the Effectiveness of Demographic Policies," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 170-184.
    19. Archana Dang & Pushkar Maitra & Nidhiya Menon, 2017. "Labor Market Engagement and the Health of Working Adults: Evidence from India," Working Papers id:12218, eSocialSciences.
    20. Thirtle, C. & Bottomley, P., 1988. "Explaining Total Factor Productivity Change: Returns to R & D in U.K. Agricultural Research," Manchester Working Papers in Agricultural Economics 232809, University of Manchester, School of Economics, Agricultural Economics Department.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:4023. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.