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Table 2 OLS estimates for the evolution of average wage, labor productivity, and wages to revenue ratio

From: The plant life-cycle of the average wage of employees in U.S. manufacturing

      

Wage bill/Revenue

Dependent variable:

Average wage ($1,000)

Revenue/Employment ($1,000)

(%)

Independent variables

 

I

II

I

II

I

II

Lifespan = 2

       

Entry

 

-3.490***

-3.042***

-9.638***

-5.740***

-1.159***

-1.661***

  

[0.035]

[0.035]

[0.315]

[0.310]

[0.076]

[0.075]

Exit

 

-3.775***

-3.356***

-12.241***

-8.871***

-0.692 ***

-1.111***

  

[0.035]

[0.035]

[0.315]

[0.310]

[0.076]

[0.075]

Lifespan = 3

       

Entry

 

-3.134***

-2.713***

-8.227***

-4.762***

-1.125***

-1.561**

  

[0.047]

[0.047]

[0.425]

[0.417]

[0.102]

[0.101]

5 years from entry

 

-2.958***

-2.570***

-8.118***

-5.077***

-0.651***

-1.025***

  

[0.047]

[0.047]

[0.423]

[0.415]

[0.101]

[0.101]

Exit

 

-3.274***

-2.920***

-11.227***

-9.112***

-0.131

-0.362***

  

[0.048]

[0.048]

[0.436]

[0.427]

[0.104]

[0.104]

Lifespan = 4

       

Entry

 

-2.646***

-2.283***

-6.716***

-4.280***

-0.883***

-1.158***

  

[0.065]

[0.064]

[0.584]

[0.572]

[0.208]

[0.139]

5 years from entry

 

-2.501***

-2.157***

-5.009***

-3.662***

-0.773***

-1.043 ***

  

[0.064]

[0.064]

[0.579]

[0.567]

[0.139]

[0.138]

10 years from entry

 

-2.390***

-2.078***

-7.191***

-5.444***

-0.132***

-0.305***

  

[0.064]

[0.064]

[0.578]

[0.566]

[0.138]

[0.137]

Exit

 

-2.828***

-2.547**

-11.091***

-10.172***

0.391**

0.354**

  

[0.066]

[0.065]

[0.592]

[0.579]

[0.142]

[0.140]

Lifespan = 5

       

Entry

 

-2.397***

-2.081***

-6.466***

-4.957***

-0.838**

-0.967**

  

[0.096]

[0.096]

[0.868]

[0.849]

[0.208]

[0.206]

5 years from entry

 

-2.142***

-1.824***

-5.009***

-3.140***

-1.003***

-1.196***

  

[0.096]

[0.095]

[0.863]

[0.845]

[0.207]

[0.205]

10 years from entry

 

-1.949***

-1.665***

-5.775***

-4.353***

-0.064

-0.192

  

[0.095]

[0.094]

[0.854]

[0.835]

[0.205]

[0.203]

15 years from entry

 

-2.036***

-1.469***

-7.734***

-7.087***

0.328**

0.323*

  

[0.077]

[0.077]

[0.698]

[0.683]

[0.167]

[0.166]

Exit

 

-2.489***

-2.120**

-10.442***

-10.741***

0.246

-0.404

  

[0.141]

[0.140]

[1.267]

[1.240]

[0.304]

[0.301]

Lifespan = 6

       

Entry

 

-1.998***

-1.763***

-2.932**

-2.692***

-0.458

-0.964***

  

[0.166]

[0.165]

[1.497]

[1.464]

[0.359]

[0.356]

5 years from entry

 

-1.853***

-1.581**

-2.053

-0.991

-0.896**

-0.151

  

[0.166]

[0.165]

[1.501]

[1.468]

[0.360]

[0.094]

10 years from entry

 

-1.837***

-1.573***

-4.236**

-3.245**

-0.018

-0.077

  

[0.164]

[0.163]

[1.480]

[1.448]

[0.355]

[0.351]

15 years from entry

 

-1.585***

-1.367**

-2.240*

-2.192

-0.062

-0.004

  

[0.162]

[0.161]

[1.458]

[1.426]

[0.349]

[0.346]

20 years from entry

 

-1.477***

-1.287**

-3.559**

-3.889***

0.203

0.351

  

[0.166]

[0.165]

[1.494]

[1.461]

[0.358]

[0.354]

Exit

 

-2.179***

-1.998***

-6.112***

-6.792***

0.181

0.374

  

[0.167]

[0.165]

[1.502]

[1.469]

[0.360]

[0.356]

Industry x year fixed effects

 

Y

Y

Y

Y

Y

Y

Other controls

 

N

Y

N

Y

N

Y

N

 

1,219,769

1,219,769

1,219,769

1,219,769

1,219,769

1,219,769

R 2

 

0.29

0.30

0.38

0.41

0.43

0.44

  1. Notes: Standard errors in brackets. (*),(**),(***) indicate significance at 10%,5%,1%, respectively. Life-span indicators were interacted with life-cycle indicators. Other controls include a cubic spline in plant size (measured by total employment) and an indicator of multi-plant firm. The omitted category is plants that are at least 20 years from entry and to exit.
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