Basic Wages and Firm Characteristics: Rent Sharing in French Manufacturing

17 Pages Posted: 18 Dec 2004

See all articles by Fathi Fakhfakh

Fathi Fakhfakh

Université Paris II - Panthéon-Assas

Felix R. Fitzroy

University of St. Andrews; IZA Institute of Labor Economics

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.

Suggested Citation

Fakhfakh, Fathi and Fitzroy, Felix R., Basic Wages and Firm Characteristics: Rent Sharing in French Manufacturing. Labour: Review of Labour Economics and Industrial Relations, Vol. 18, No. 4, pp. 615-631, December 2004. Available at SSRN: https://ssrn.com/abstract=628766

Fathi Fakhfakh

Université Paris II - Panthéon-Assas ( email )

France

Felix R. Fitzroy (Contact Author)

University of St. Andrews ( email )

St Salvator's College
St Andrews, Fife, KY16 9AJ
United Kingdom
+44 1334 462437 (Phone)
+44 1334 462444 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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