High Wage Workers and High Wage Firms
Citations Over Time
Abstract
We study a longitudinal sample of over one million French workers and over 500,000 employing finns. Real total annual compensation per worker is decomposcd into components related to observable characteristics, worker heterogeneity, firm heterogeneity and residual variation. Except for the residual, all components may be correlated in an arbitrary fashion. At the level of the individual, we find that person-effects, especially those not related to observables like education, are the most important source of wage variation in France. Firm-effects, while important, are not as important as person-effects. At the level of firms, we find that enterprises that hire high-wage workers are more productive but not more profitable. They are also more capital and high-skilled employee intensive. Enterprises that pay higher wages, controlling for person-effects, are more productive and more profitable. They arc also more capital intensive but arc not more high-skilled labor intensive. We also find that person-effects explain 92% of inter-industiy wage differentials.
Related Papers
- → Interindustry Wage Differentials and Efficiency Wages: Some Canadian Evidence(1994)50 cited
- Market Responses to Interindustry Wage Differentials - eScholarship(2000)
- → Market Responses to Interindustry Wage Differentials(2000)6 cited