Labour Market Characteristics and Profitability: Econometric analysis of Hungarian Exporting Firms, 1986-1995

László Halpern () and Gabor Korosi

No 41, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan Stephen M. Ross Business School

Abstract: Labour market and financial information is combined to explore the effect of the quality of labour employed on the profitability of the firm. The quality of labour is measured as the portion of wage differentials that cannot be explained by the human capital model. Profitability of Hungarian exporting firms can be explained by economic factors during transition. Beside the quality of labour export share, wage and bank costs, payables, receivables, foreign ownership,. inventories, amortisation and equity became significant explanatory variables. Sectors proved to be insignificant explanation for profit differences. Changing effects of monopolist competition and of the size of the firm reflect turbulent institutional environment for firms.

Keywords: firms in transition economy; labour; monopoly; profit (search for similar items in EconPapers)
JEL-codes: C23 D21 D42 J31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Date: 1997-05-01

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Persistent link: http://EconPapers.repec.org/RePEc:wdi:papers:1997-41

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