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Basic Wages and Firm Characteristics: Rent-sharing in Frensh Manufacturing

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Author Info
Fathi Fakhfakh
Felix FitzRoy

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Abstract

This paper shows that firm profits (and losses) are strongly related to individual hourly basic wages for most employees, as well as to the total earnings measures that have been used previously but are correlated with working time. Capital intensity is independently important without reducing the significance of profits as in other studies. Our estimated basic wage-profit elasticity of one to two percent in the presence of numerous individual and firm controls is of similar magnitude to the female collective bargain premium and the firm size-wage effect, and these effects are much smaller than previous estimates without firm-specific controls

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Publisher Info
Paper provided by Centre for Research into Industry, Enterprise, Finance and the Firm in its series CRIEFF Discussion Papers with number 0203.

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Date of creation: Feb 2002
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Handle: RePEc:san:crieff:0203

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Postal: School of Economics and Finance, University of St. Andrews, Fife KY16 9AL
Phone: 01334 462420
Web page: http://www.st-and.ac.uk/%7Ewww_crieff/discpaps.html

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Find related papers by JEL classification:
J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Ichniowski, Casey & Shaw, Kathryn & Prennushi, Giovanna, 1997. "The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines," American Economic Review, American Economic Association, vol. 87(3), pages 291-313, June. [Downloadable!] (restricted)
  2. Gérard Ballot & Fathi Fakhfakh & Erol Taymaz, 2002. "Who benefits from training and R&D: The firm or the workers? A study on panels of French and Swedish firms," ERC Working Papers 0201, ERC - Economic Research Center, Middle East Technical University, revised Jan 2002. [Downloadable!]
  3. Reid, Gavin C, 1996. " Fast Growing Small Entrepreneurial Firms and Their Venture Capital Backers: An Applied Principal-Agent Analysis," Small Business Economics, Springer, vol. 8(3), pages 235-48, June.
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  4. Hildreth, Andrew K G & Oswald, Andrew J, 1997. "Rent-Sharing and Wages: Evidence from Company and Establishment Panels," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 318-37, April. [Downloadable!] (restricted)
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  5. Chan, Yuk-Shee, 1983. " On the Positive Role of Financial Intermediation in Allocation of Venture Capital in a Market with Imperfect Information," Journal of Finance, American Finance Association, vol. 38(5), pages 1543-68, December. [Downloadable!] (restricted)
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  6. Gavin C Reid, 1998. "The Application of Principal-Agent Methods to Investor-Investee Relations in the UK Venture Capital Industry," CRIEFF Discussion Papers 9810, Centre for Research into Industry, Enterprise, Finance and the Firm. [Downloadable!]
  7. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory Of Fairness, Competition, And Cooperation," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 817-868, August. [Downloadable!] (restricted)
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  8. Blanchflower, David G & Oswald, Andrew J & Sanfey, Peter, 1996. "Wages, Profits, and Rent-Sharing," The Quarterly Journal of Economics, MIT Press, vol. 111(1), pages 227-51, February. [Downloadable!] (restricted)
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  9. Campbell, Carl M, III & Kamlani, Kunal S, 1997. "The Reasons for Wage Rigidity: Evidence from a Survey of Firms," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 759-89, August.
  10. Holmlund, Bertil & Zetterberg, Johnny, 1991. "Insider effects in wage determination : Evidence from five countries," European Economic Review, Elsevier, vol. 35(5), pages 1009-1034, July. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Robert Plasman & Tojerow & François Rycx, 2006. "Industry Wage Differentials, Unobserved Ability, and Rent-Sharing: Evidence from Matched Worker-Firm Data, 1995-2002," Working Papers DULBEA 06-14.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
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  2. W. Jos Jansen & Ad C. J. Stokman, 2006. "International Rent Sharing and Domestic Labour Markets: A Macroeconomic Analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(4), pages 792-813, December. [Downloadable!] (restricted)
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  3. Pedro S. Martins, 2004. "Rent Sharing Before and After the Wage Bill," Discussion Paper Series, Department of Economics 0405, Department of Economics, University of St. Andrews. [Downloadable!]
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  4. Robert Plasman & François Rycx & Ilan Tojerow, 2007. "Wage Differentials in Belgium: The Role of Worker and Employer Characteristics," Working Papers DULBEA 07-12.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
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  5. Tojerow, Ilan & Rycx, François & Plasman, Robert, 2004. "Rent sharing and the gender wage gap in Belgium," Economic Literature ULB 2013-785, Université libre de Bruxelles, Libraries. [Downloadable!]
  6. Philip Du Caju & François Rycx & Ilan Tojerow, 2008. "Rent-Sharing and the Cyclicality of Wage Differentials," Working Papers CEB 08-035.RS, Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, Centre Emile Bernheim (CEB). [Downloadable!]
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  7. BERND GÖRZIG & MARTIN GORNIG & AXEL WERWATZ, 2005. "Explaining Eastern Germany's Wage Gap: The Impact of Structural Change," Post-Communist Economies, Taylor and Francis Journals, vol. 17(4), pages 449-464, December. [Downloadable!] (restricted)
  8. Guy Navon & Ilan Tojerow, 2006. "The Effects of Rent-Sharing on the Gender Wage Gap in the Israeli Manufacturing Sector," IZA Discussion Papers 2361, Institute for the Study of Labor (IZA). [Downloadable!]
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