J31, J21, J24, L60, L23, L11, D24 </AbstractSection> Copyright Dinlersoz et al.; licensee Springer. 2013

This paper explores the evolution of the average wage of employees over the life-cycle of a manufacturing plant. The average wage starts out low for a new plant and increases along with labor productivity as the plant ages. As a plant approaches exit, its average wage falls, but more slowly than...