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Exact(44)
Results in Table5 show that stronger unions are associated with larger firm effects in the industry.
These average person and firm effects are estimated using the methods described in section 5.
Industries with few agreements targeted at the high‐wage workers have relatively high firm effects.
Moulton et al. (1996) further argue that firm effects dominate industry effects in explaining failure.
As such, the analysis of industry effects in the presence of person and firm effects can be accomplished by appropriate definition of the industry effect with respect to the firm Effects.
However, the Breusch-Pagan test points at the importance of time-invariant firm effects in our analysis and the Hausman test shows that such firm effects are correlated with our time-varying variables of interest.7.
Similar(16)
The CGT vote is related solely and positively to the firm effect.
Indeed, union strength is highly correlated to the firm effect and not the person effect in both countries.
This raw differential of 0.659 log points consists of two‐thirds person effect and one‐third firm effect.
In NAP 27 (office and accounting machines) most of the effect comes from the average firm effect.
For instance, the firm effect remains strongly related to the quasi‐rent but not the person effect.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com