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Table 4 Adjustment costs as a percentage of revenue

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

 

(a) Estimates using continuing plants only

  

Model with wage

Model with wage and

  

adjustment only

employment adjustment

 

Adjustment

        
 

Cost

    

Upward

Downward

Upward

Downward

 

Percentile

All

Upward

Downward

All

(Wages)

(Wages)

(Employment)

(Employment)

Wage Adjustment

25

0.1%

0.1%

0.4%

0.2%

0.1%

0.3%

  
 

50

0.8%

0.4%

2.0%

1.0%

0.6%

1.6%

  
 

75

3.7%

1.5%

7.6%

4.2%

2.7%

6.2%

  

Employment Adjustment

25

   

0.6%

  

0.6%

0.5%

 

50

   

3.2%

  

2.9%

3.8%

 

75

   

14.3%

  

12.6%

16.9%

 

(b) Estimates using all plants: Continuing plants only

  

Model with wage

Model with wage and

  

adjustment only

employment adjustment

 

Adjustment

        
 

Cost

    

Upward

Downward

Upward

Downward

 

Percentile

All

Upward

Downward

All

(Wages)

(Wages)

(Employment)

(Employment)

Wage Adjustment

25

0.3%

0.2%

0.7%

0.0%

0.0%

0.6%

  
 

50

1.6%

0.8%

3.5%

0.4%

0.1%

3.2%

  
 

75

7.4%

3.5%

13.4%

3.4%

3.9%

2.9%

  

Employment Adjustment

25

   

1.2%

  

1.2%

1.1%

 

50

   

6.7%

  

5.9%

8.2%

 

75

   

29.9%

  

26.0% 35.9%

 
 

(c) Estimates using all plants: Exiting plants only

  

Model with wage

Model with wage and

  

adjustment only

employment adjustment

 

Adjustment

        
 

Cost

    

Upward

Downward

Upward

Downward

 

Percentile

All

Upward

Downward

All

(Wages)

(Wages)

(Employment)

(Employment)

Wage Adjustment

25

0.5%

0.2%

1.3%

0.1%

0.0%

1.1%

  
 

50

3.0%

1.2%

6.7%

0.9%

0.1%

6.0%

  
 

75

14.2%

5.3%

25.7%

7.9%

0.5%

23.0%

  

Employment Adjustment

25

   

2.4%

  

1.8%

3.4%

 

50

   

14.8%

  

10.0%

22.4%

 

75

   

70.6%

  

48.5%

94.7%