Firm-Specific Determinants of the Real Wage

35 Pages Posted: 15 Jan 2007 Last revised: 31 Dec 2022

See all articles by Janet Currie

Janet Currie

Princeton University; National Bureau of Economic Research (NBER); Institute for the Study of Labor (IZA)

Sheena McConnell

Independent

Date Written: March 1992

Abstract

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.

Suggested Citation

Currie, Janet and McConnell, Sheena, Firm-Specific Determinants of the Real Wage (March 1992). NBER Working Paper No. w4023, Available at SSRN: https://ssrn.com/abstract=476158

Janet Currie (Contact Author)

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Sheena McConnell

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