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Do Operating Profits Induce a Wage Premium Equally Shared among Employees Earning High or Low Incomes?

Mohn Centre for Innovation and Regional Development, Western Norway University of Applied Sciences, P.O. Box 7030, NO-5020 Bergen, Norway
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Academic Editor: Joydeep Bhattacharya
Economies 2021, 9(2), 81; https://doi.org/10.3390/economies9020081
Received: 4 February 2021 / Revised: 10 May 2021 / Accepted: 20 May 2021 / Published: 22 May 2021
Panel data show that between 2001 and 2014 Norwegian industries’ increasing aggregated operating profits per employee increased average wages and wage inequality. The data imply that increasing profits, perhaps unsurprisingly, induce a wage premium. The data further imply that employees earning high incomes at the outset had the highest wage increase percentage-wise. Decreasing operating profits per employee had opposite but less robust effects on average wages and wage inequality. Panel data Granger causality tests finally showed that average wages, but not wage inequality, reversely and positively affect operating profits per employee. View Full-Text
Keywords: operating profits; Gini-coefficients; average wages; wage inequality; performance; productivity; causality operating profits; Gini-coefficients; average wages; wage inequality; performance; productivity; causality
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MDPI and ACS Style

Aarstad, J.; Kvitastein, O.A. Do Operating Profits Induce a Wage Premium Equally Shared among Employees Earning High or Low Incomes? Economies 2021, 9, 81. https://doi.org/10.3390/economies9020081

AMA Style

Aarstad J, Kvitastein OA. Do Operating Profits Induce a Wage Premium Equally Shared among Employees Earning High or Low Incomes? Economies. 2021; 9(2):81. https://doi.org/10.3390/economies9020081

Chicago/Turabian Style

Aarstad, Jarle, and Olav A. Kvitastein. 2021. "Do Operating Profits Induce a Wage Premium Equally Shared among Employees Earning High or Low Incomes?" Economies 9, no. 2: 81. https://doi.org/10.3390/economies9020081

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