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

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  • F. FAKHFAKH
  • F. FITZROY

Abstract

. This paper shows that firm profits (and losses), and value added, are strongly related to individual hourly basic wages for most employees, as well as to the total earnings measures used previously but correlated with working time. Capital intensity is independently important without reducing the significance of profits, as in other studies. Value added avoids the negative bias implicit in accounting profits, and has a much larger effect on basic wages and earnings in the presence of numerous individual and firm controls.
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Suggested Citation

  • F. Fakhfakh & F. Fitzroy, 2003. "Basic Wages and Firm Characteristics : Rent-sharing in French Manufacturing," Working Papers ERMES 0311, ERMES, University Paris 2.
    • Handle: RePEc:erm:papers:0311
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    File URL: http://www.u-paris2.fr/ermes/doctrav/trav0311
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    References listed on IDEAS

    as
    1. 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.
    2. Margolis, D.N. & Salvanes, K.G., 2001. "Do Firms Really Share Rents with Their Workers?," Papers 11/2001, Norwegian School of Economics and Business Administration-.
    3. Fathi Fakhfakh & Felix FitzRoy, 2004. "Basic Wages and Firm Characteristics: Rent Sharing in French Manufacturing," LABOUR, CEIS, vol. 18(4), pages 615-631, December.
    4. Pedro Martins, 2009. "Rent sharing before and after the wage bill," Applied Economics, Taylor & Francis Journals, vol. 41(17), pages 2133-2151.
    5. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    6. Marcello Estevao & Stacey Tevlin, 2000. "Do firms share their success with workers? The response of wages to product market conditions," Finance and Economics Discussion Series 2000-17, Board of Governors of the Federal Reserve System (U.S.).
    7. Arai, Mahmood & Heyman, Fredrik, 2001. "Wages, Profits and Individual Unemployment Risk : Evidence from Matched Worker-Firm Data," Working Paper Series 172, Trade Union Institute for Economic Research.
    8. repec:bla:econom:v:70:y:2003:i:280:p:597-617 is not listed on IDEAS
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    More about this item

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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