Basic Wages and Firm Characteristics: Rent Sharing in French Manufacturing

Fathi Fakhfakh and Felix FitzRoy

LABOUR, 2004, vol. 18, issue 4, 615-631

Abstract: Abstract. This paper shows that firm profits (and losses), and value added, are strongly related to individual hourly basic wages for most employees, as well as to the total earnings measures used previously but correlated with working time. Capital intensity is independently important without reducing the significance of profits, as in other studies. Value added avoids the negative bias implicit in accounting profits, and has a much larger effect on basic wages and earnings in the presence of numerous individual and firm controls.

Date: 2004
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https://doi.org/10.1111/j.1121-7081.2004.00280.x

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Working Paper: Basic Wages and Firm Characteristics: Rent-sharing in French Manufacturing (2003)
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