Firm-Specific Determinants of the Real Wage
Working Paper 4023
DOI 10.3386/w4023
Issue Date
Bargaining models suggest that firm-specific variables play an important role in wage determination. Yet previous empirical studies of wage determination have largely ignored these variables. Our analysis of a large panel data set of U.S. wage contracts suggests that firm-specific variables suggested by bargaining models. such as the values of sales. the capital-labor ratio, and the financial liquidity of the firm. are important determinants of negotiated real wages.
Published Versions
Review of Economics and Statistics, May 1992 citation courtesy of