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Table 5 GMM estimates for the model’s parameters using ASM 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 0.11*** 0.11*** 0.10*** 0.07*** 0.14*** 0.14*** 0.09*** 0.09***
  [0.00006] [0.00006] [0.002] [0.0001] [0.00007] [0.00006] [0.0004] [0.0001]
γ 0.17*** 0.17*** 0.22*** 0.20*** 0.21*** 0.31*** 0.18*** 0.12***
  [0.00007] [0.00012] [0.00008] [0.0001] [0.0003] [0.0003] [0.0003] [0.0003]
λ U 3.72*** 1.72*** 3.44*** 0.83*** 1.45*** 1.32*** 1.56*** 1.31***
  [0.006] [0.004] [0.004] [0.004] [0.007] [0.008] [0.004] [0.008]
λ D 1.31*** 2.33*** 2.76*** 1.46*** 18.82*** 2.89*** 19.73*** 2.89***
  [0.008] [0.002] [0.009] [0.001] [0.052] [0.007] [0.049] [0.007]
v U - - 0.64*** 2.77*** - - 1.53*** 1.77***
    [0.21] [0.14]    [0.538] [0.221]
v D - - 96.39*** 32.65*** - - 44.39*** 43.49***
    [40.5] [6.0]    [15.6] [1.94]
  Revenue measure: Value added (deflated)
α 0.26*** 0.26*** 0.10*** 0.17*** 0.31*** 0.32*** 0.32*** 0.33***
  [0.0002] [0.0002] [0.0005] [0.0002] [0.0001] [0.0001] [0.0001] [0.0003]
γ 0.20*** 0.19*** 0.19*** 0.19*** 0.16*** 0.17*** 0.13*** 0.17***
  [0.0001] [0.0001] [0.0001] [0.0001] [0.0003] [0.0003] [0.0004] [0.0003]
λ U 0.77*** 1.14*** 2.33*** 0.33*** 1.73*** 1.17*** 1.44*** 1.21***
  [0.005] [0.003] [0.005] [0.001] [0.005] [0.006] [0.006] [0.004]
λ D 1.93*** 1.24*** 2.88*** 0.24*** 12.16*** 1.81*** 14.39*** 1.82***
  [0.008] [0.001] [0.008] [0.001] [0.04] [0.006] [0.041] [0.006]
v U - - 0.62*** 0.33*** - - 1.52*** 1.48***
    [0.221] [0.113]    [0.741] [0.255]
v D - - 99.48*** 32.84*** - - 86.32*** 37.10***
    [22.0] [6.2]    [14.2] [7.2]
N 3,926,908 3,927,407 3,926,908 3,927,407 3,926,908 3,927,407 3,926,908 3,927,407
  1. Notes: Standard errors in brackets. (*),(**),(***) indicate significance at 10%,5%,1%, respectively. Number of observations reflect sampling weights used.