IDEAS home Printed from https://ideas.repec.org/a/oup/apecpp/v38y2016i4p618-631..html
   My bibliography  Save this article

Labor Market Reform and Rent-sharing: A Quasi-experiment Experience

Author

Listed:
  • Ambra Poggi
  • Rosella Nicolini

Abstract

We analyze the impact on wages of the adoption of a rent-sharing remuneration scheme aimed at making labor institutions more flexible. We work within a quasi-experimental setting referring to a sample of Italian companies before and after the introduction of the Treu Reform (1997). Our estimations confirm that this reform not only increased insider workers' wages via rent-sharing, but also fueled a σ−convergence process of the rent-sharing elasticity across the sectors at a different rate. Finally, we deliver a reasoned discussion of the consequences of implementing this reform on the Italian job market. This reform produced advances in the quality of job remuneration but it deepened a structural gap in the Italian labor market composition.

Suggested Citation

  • Ambra Poggi & Rosella Nicolini, 2016. "Labor Market Reform and Rent-sharing: A Quasi-experiment Experience," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(4), pages 618-631.
    • Handle: RePEc:oup:apecpp:v:38:y:2016:i:4:p:618-631.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/aepp/ppv026
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Oswald, Andrew, 1996. "Rent-Sharing in the Labor Market," The Warwick Economics Research Paper Series (TWERPS) 474, University of Warwick, Department of Economics.
    2. David Margolis & Kjell G. Salvanes, 2000. "Do Firms Really Share Rents with Their Employees?," Post-Print halshs-00367838, HAL.
    3. Margolis, D.N. & Salvanes, K.G., 2001. "Do Firms Really Share Rents with Their Workers?," Papers 11/2001, Norwegian School of Economics and Business Administration-.
    4. Michael Rusinek & François Rycx, 2013. "Rent-Sharing under Different Bargaining Regimes: Evidence from Linked Employer–Employee Data," British Journal of Industrial Relations, London School of Economics, vol. 51(1), pages 28-58, March.
    5. Quah, D., 1990. "Galton'S Fallacy And The Tests Of The Convergence Hypothesis," Working papers 552, Massachusetts Institute of Technology (MIT), Department of Economics.
    6. Strozzi, Chiara & Pistoresi, Barbara, 2001. "Rent Sharing in Wage Determination: Evidence from Italy," CEPR Discussion Papers 2939, C.E.P.R. Discussion Papers.
    7. Alessia Matano & Paolo Naticchioni, 2011. "Is There Rent Sharing in Italy? Evidence from Employer-Employee Data," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(2), pages 265-279, December.
    8. Quah, Danny, 1993. " Galton's Fallacy and Tests of the Convergence Hypothesis," Scandinavian Journal of Economics, Wiley Blackwell, vol. 95(4), pages 427-443, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Edinson Tolentino, 2022. "An evaluation of a mandatory profit-sharing reform in Peru, using quasi-experimental methods," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(2), pages 313-334, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alessia Matano & Paolo Naticchioni, 2011. "Is There Rent Sharing in Italy? Evidence from Employer-Employee Data," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(2), pages 265-279, December.
    2. Pedro Martins, 2009. "Rent sharing before and after the wage bill," Applied Economics, Taylor & Francis Journals, vol. 41(17), pages 2133-2151.
    3. Mirella Damiani & Jens Hölscher & Fabrizio Pompei, 2011. "Labour market inequalities and the role of institutions," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(2), pages 163-173, December.
    4. Guy Navon & Ilan Tojerow, 2013. "Does Rent-sharing Profit Female and Male Workers? Evidence from Israeli Matched Employer–Employee Data," LABOUR, CEIS, vol. 27(3), pages 331-349, September.
    5. Alessia Matano & Paolo Naticchioni, 2017. "The Extent of Rent Sharing along the Wage Distribution," British Journal of Industrial Relations, London School of Economics, vol. 55(4), pages 751-777, December.
    6. Martins, Pedro S. & Esteves, Luiz A., 2006. "Is There Rent Sharing in Developing Countries? Matched-Panel Evidence from Brazil," IZA Discussion Papers 2317, Institute of Labor Economics (IZA).
    7. Pedro Martins, 2009. "Rent sharing before and after the wage bill," Applied Economics, Taylor & Francis Journals, vol. 41(17), pages 2133-2151.
    8. JOrge Alonso Lotero Contreras & Sergio Restrepo & Liliana Yaned Franco Vásquez, 2000. "Modelos de desarrollo y convergencia interregional de la productividad industrial en Colombia," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 52, pages 51-85, Enero Jun.
    9. Zhao, Xueting & Burnett, J. Wesley & Lacombe, Donald J., 2014. "Province-level Convergence of China CO2 Emission Intensity," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169403, Agricultural and Applied Economics Association.
    10. repec:gdk:wpaper:3 is not listed on IDEAS
    11. Cristina Brasili & Luciano Gutierrez, 2004. "Regional convergence across European Union," Development and Comp Systems 0402002, University Library of Munich, Germany.
    12. Steven N. Durlauf & Andros Kourtellos & Chih Ming Tan, 2008. "Empirics of Growth and Development," Chapters, in: Amitava Krishna Dutt & Jaime Ros (ed.), International Handbook of Development Economics, Volumes 1 & 2, volume 0, chapter 3, Edward Elgar Publishing.
    13. Pozzolo, Alberto Franco, 2004. "Endogenous Growth in Open Economies - A Survey of Major Results," Economics & Statistics Discussion Papers esdp04020, University of Molise, Department of Economics.
    14. William Easterly & Ross Levine, 2001. "It's Not Factor Accumulation: Stylized Facts and Growth Models," The World Bank Economic Review, World Bank, vol. 15(2), pages 177-17-219.
    15. Sabien Dobbelaere & Jacques Mairesse, 2010. "Comparing Micro-evidence on Rent Sharing from Three Different Approaches," NBER Working Papers 16220, National Bureau of Economic Research, Inc.
    16. Vicente Esteve & Simon Sosvilla-Rivero & Cecilio Tamarit, 2000. "Convergence in fiscal pressure across EU countries," Applied Economics Letters, Taylor & Francis Journals, vol. 7(2), pages 117-123.
    17. Nicholas Apergis & Christina Christou & Stephen Miller, 2012. "Convergence patterns in financial development: evidence from club convergence," Empirical Economics, Springer, vol. 43(3), pages 1011-1040, December.
    18. Martin Victor & Vazquez Guillermo, 2015. "Club convergence in Latin America," The B.E. Journal of Macroeconomics, De Gruyter, vol. 15(2), pages 791-820, July.
    19. Jonathan Temple, 1995. "Testing the augmented Solow Model," Economics Papers 18 & 106., Economics Group, Nuffield College, University of Oxford.
    20. Lajos Baráth & Imre Fertő, 2017. "Productivity and Convergence in European Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 228-248, February.
    21. Hirsch, Julia & Walz, Uwe, 2019. "The financing dynamics of newly founded firms," Journal of Banking & Finance, Elsevier, vol. 100(C), pages 261-272.

    More about this item

    Keywords

    Rent-sharing; convergence; IV estimation;
    All these keywords.

    JEL classification:

    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:apecpp:v:38:y:2016:i:4:p:618-631.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.