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Rent-Sharing And Wages: Product Demand Or Technology Driven Premia?

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  • Andrew Hildreth
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    Abstract

    There is a renewed interest in non-competitive wage determination. Studies have shown that firms share rents with workers. How such rents are appropriated by firms to share, or why firms may wish to do so, is still an area of debate. Using a unique data set, where workers are matched directly to their workplace, we use instrumental variable estimation to examine which shocks create rent-sharing and the size of the rent-sharing effects. The results find rentsharing is strongest for establishments investing in new process technology, and for employers who wish to share their successes with their employees.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/10438599800000005
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

    Volume (Year): 5 (1998)
    Issue (Month): 2-4 ()
    Pages: 199-226

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    Handle: RePEc:taf:ecinnt:v:5:y:1998:i:2-4:p:199-226

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    Related research

    Keywords: wage determination; product markets; new technology. JEL Classification: J3; 033;

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    Cited by:
    1. Hollanders,Hugo & Weel,Bas,ter, 1999. "Skill-Biased Technical Change: On Endogenous Growth, Wage Inequality and Government Intervention," Research Memorandum 013, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    2. Bruinshoofd,Allard & Hollanders,Hugo & Weel,Bas,ter, 1999. "Knowledge Spillovers and Wage Inequality: An Empirical Investigation of Knowledge-Skill Complementarity," Research Memorandum 008, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).

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