Campus Units

Economics, Accounting

Document Type

Article

Publication Version

Accepted Manuscript

Publication Date

10-2004

Journal or Book Title

Southern Economic Journal

Volume

71

Issue

2

First Page or Article ID Number

314

Last Page

333

DOI

10.2307/4135294

Abstract

Long-term attachments between workers and firms are common. Numerous studies have examined worker returns to tenure, but little is known of firm returns to firm-worker matches. Yet these attachments represent a human capital asset quasi-held by the firm, which is not captured by traditional accounting measures of firm assets. Firms with large quasi-holdings of human capital will have higher measured return on assets, other things equal. Analysis of data on 250 large manufacturing firms supports the view that firms profit from long-term attachments with their workers. Consequently, unmeasured human capital assets contribute to the explanation of persistence in measured long-run excess profits across

JEL Classification

J31, J24, M4

Comments

This is the peer reviewed version of the following article: Orazem, Peter F., Marvin Bouillon and B. Michael Doran. 2004. “Long-term Attachments and Long-Run Firm Rates of Return.” Southern Economic Journal 71 (2):314-333, which has been published in final form at DOI: 10.2307/4135294. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.

Copyright Owner

Southern Economic Association

Language

en

File Format

application/pdf

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