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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%