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Table 3 GMM estimates for the model’s parameters using CM sample

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

 

Revenue measure: Total value of shipments (deflated)

 

Adjustment costs

Adjustment cost

 

(conventional growth rate)

(alternative growth rate)

 

Wage

Wage and employment

Wage

Wage and employment

 

adjustment

adjustment

adjustment

adjustment

 

Continuing

All

Continuing

All

Continuing

All

Continuing

All

 

plants

plants

plants

plants

plants

plants

plants

plants

Parameter

(I)

(II)

(III)

(IV)

(I)

(II)

(III)

(IV)

α

0.12***

0.11***

0.12***

0.09***

0.12***

0.13***

0.12***

0.14***

 

[0.0005]

[0.0006]

[0.002]

[0.0006]

[0.0004]

[0.0004]

[0.0005]

[0.001]

γ

0.19***

0.18***

0.25***

0.24***

0.27***

0.42***

0.18***

0.13***

 

[0.0004]

[0.0005]

[0.002]

[0.0007]

[0.0009]

[0.002]

[0.002]

[0.002]

λ U

2.89***

2.62***

10.73***

-0.98***

5.94***

14.18***

1.25***

2.77***

 

[0.05]

[0.04]

[0.41]

[0.01]

[0.11]

[0.15]

[0.03]

[0.08]

λ D

35.61***

63.10***

20.81***

56.48***

9.55***

6.30***

10.10***

10.46***

 

[0.25]

[0.42]

[0.74]

[0.33]

[0.07]

[0.06]

[0.12]

[0.33]

v U

-

-

8.62***

0.56***

-

-

1.97***

13.43***

   

[0.52]

[0.03]

  

[0.42]

[0.72]

v D

-

-

23.17***

42.91***

-

-

8.90***

88.21***

   

[4.82]

[1.03]

  

[0.12]

[1.94]

 

Revenue measure: Value added (deflated)

α

0.36***

0.39***

0.25***

0.33***

0.32***

0.37***

0.27**

0.39***

 

[0.0005]

[0.0008]

[0.003]

[0.0007]

[0.0002]

[0.001]

[0.001]

[0.003]

γ

0.47***

0.44***

0.37***

0.39***

0.35***

0.27***

0.22***

0.42***

 

[0.002]

[0.001]

[0.004]

[0.002]

[0.0002]

[0.001]

[0.002]

[0.002]

λ U

1.39***

1.00***

3.73***

1.38***

3.44***

3.25***

1.04***

-0.54***

 

[0.04]

[0.02]

[0.24]

[0.04]

[0.08]

[0.06]

[0.03]

[0.05]

λ D

15.63***

13.95***

29.32***

19.25***

10.31***

8.34***

6.82***

1.37***

 

[0.17]

[0.20]

[0.47]

[0.21]

[0.06]

[0.06]

[0.08]

[0.22]

v U

-

-

3.46***

1.13***

-

-

2.03***

17.74***

   

[0.28]

[0.04]

  

[0.32]

[0.79]

v D

-

-

41.42***

47.60***

-

-

6.69***

58.32***

   

[2.70]

[0.72]

  

[0.09]

[2.20]

N

804,245

986,977

804,245

986,977

804,245

986,977

804,245

986,977

  1. Notes: Standard errors in brackets. (*),(**),(***) indicate significance at 10%,5%,1%, respectively.
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