TABLE 8:  Compensation Levels and Growth
Dependent variable: ln(labor costs per employee)
	Compensation			Compensation levels,			Annual growth,			Descriptive Statistics
	levels, 1997			1985-87 and 1995-97			1985-87 and 1995-97			for ln(labor costs)
										Levels and Growth
Sample:	All cos.			All cos. w/complete			All cos. w/complete			All cos. w/complete
				data for 85-87 and 95-97			data for 85-87 and 95-97			data for 85-87-95-97
Independent variables	(1)			(2)			(3)			(4)
Stock option co.
1997	0.201	***	(2.57)							3.90
1985-87				0.078	*	(1.73)	-0.017		(1.28)			3.45
1995-97				0.077	*	(1.72)	-0.01		(0.75)			3.95
Paired co.
1997	0.123	**	(2.40)							3.69
1985-87				-0.002		(0.08)	-0.006		(0.69)			3.42
1995-97				0.013		(0.44)	-0.015		(1.60)			3.92
Difference between 1985-87 and 1995-97
Stock option co.				-0.001		(0.00)	0.007		(0.40)
Paired co.				0.015		(0.40)	-0.009		(0.70)
Difference	0.078		(0.90)	-0.016		(0.24)	0.016		(0.77)
Total observations	697			1236			1044			581
# of stock option companies represented				13			12			31		39
# of paired companies represented				193			162			85		99
50%+ coverage of non-mgt.	0.172		(0.87)
<50% coverage of non-mgt.	0.260		(1.31)
Unknown coverage of non-mgt.	0.195	**	(2.10)
Paired cos.	0.124	**	(2.40)
n	696
# of stock option companies represented
*p<.10 **p<.05 ***p<.01
^ Based on robust regression run on all companies with complete data for 1985-87 and 1995-97 periods.
Controls include ln(employment) and ln(assets) interacted with each period, plus year dummies and
2-digit industry dummies.