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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.