Employer Concentration and Sensitivities of Wage Changes to Productivity Changes
| Dep. Var.: Δlog Avg. Production Worker Wages | ||||||||
|---|---|---|---|---|---|---|---|---|
| County | CZ | |||||||
| SIC3 (1) | SIC3 (2) | SIC4 (3) | SIC4 (4) | SIC3 (5) | SIC3 (6) | SIC4 (7) | SIC4 (8) | |
| log(HHI, ind–local–year) | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 |
| 3.85 | 4.22 | 3.96 | 4.75 | 4.16 | 4.82 | 3.87 | 5.09 | |
| Δlog(labor productivity) | 0.114 | 0.109 | 0.115 | 0.110 | 0.109 | 0.105 | 0.110 | 0.106 |
| 56.39 | 52.45 | 60.16 | 55.89 | 45.32 | 42.49 | 47.50 | 45.80 | |
| log(HHI) × Δlog(labor productivity) | -0.009 | -0.009 | -0.011 | -0.012 | -0.008 | -0.008 | -0.011 | -0.011 |
| -4.69 | -4.77 | -4.18 | -4.17 | -5.24 | -5.25 | -4.76 | -4.84 | |
| log(plants per segment) | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 |
| 0.06 | -0.19 | 0.96 | 0.51 | 0.03 | -0.24 | 0.98 | 0.51 | |
| log(plants per firm) | 0.000 | 0.000 | 0.000 | 0.000 | ||||
| -0.31 | -0.70 | -0.27 | -0.59 | |||||
| Plant age (/100) | -0.007 | -0.008 | -0.007 | -0.008 | -0.007 | -0.008 | -0.007 | -0.008 |
| -3.11 | -3.44 | -3.14 | -3.32 | -2.68 | -3.10 | -2.72 | -3.01 | |
| Year fixed effects | Y | Y | Y | Y | ||||
| Industry fixed effects | Y | Y | Y | Y | ||||
| Industry–year fixed effects | Y | Y | Y | Y | ||||
| Firm fixed effects | Y | Y | Y | Y | ||||
| Firm-year fixed effects | Y | Y | Y | Y | ||||
| Observations | 946,000 | 946,000 | 946,000 | 946,000 | 946,000 | 946,000 | 946,000 | 946,000 |
| R2 | 0.0877 | 0.2971 | 0.0880 | 0.3087 | 0.0877 | 0.2971 | 0.0881 | 0.3088 |
Notes: This table examines how employer concentration shapes sensitivities of changes in production worker wages to changes in labor productivity. The dependent variable is the log change in average wages per production worker as defined in Table 1. log(HHI) is lagged by one year. Columns 1–4 (Columns 5–8) present estimates using counties (CZs) to define local labor markets. Columns 1–2 and 5–6 (Columns 3–4 and 7–8) present estimates using three- and four-digit SIC industries to compute HHI, log (employment), and log(plants per segment). The t-statistics based on standard errors adjusted for sample clustering at the county or CZ level are reported below the coefficient estimates. The numbers of observations are rounded to the nearest thousand to follow the U.S. Census Bureau’s disclosure rules.