This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Rent Sharing Before and After the Wage Bill Author info | Abstract | Publisher info | Download info | Related research | Statistics Pedro S. Martins
Additional information is available for the following
registered author(s):
Many biases plague the analysis of whether employers share rents with their employees, unlike what is predicted by the competitive labour market model. Using a Portuguese matched employer-employee panel, these biases are addressed here in three complementary ways: 1) Controlling directly for the fact that firms that share more rents will, ceteris paribus, have lower net-of-wages profits. 2) Instrumenting profits via interactions between the exchange rate and the share of exports in firms’ total sales. 3) Considering firm or firm/worker spell fixed effects and highlighting the role of downward wage rigidity. These approaches clarify conflicting findings in the literature and result, in our preferred specifications, in significant evidence of rent sharing (a Lester range of pay dispersion of 56%), also shown to be robust to a number of competitive interpretations.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Paper provided by Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research in its series Working Papers with number
12.
Download reference. The following formats are available: HTML
(with abstract ),
plain text
(with abstract ),
BibTeX ,
RIS (EndNote, RefMan, ProCite),
ReDIF
Length:
Date of creation: May 2008Date of revision:
Handle: RePEc:cgs:wpaper:12Contact details of provider: Web page: http://www.busman.qmul.ac.uk/cgr/cgrindex.html More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Pedro S Martins).
Keywords: Rent Sharing ; Instrumental Variables ; Matched Employer-Employee Data ; Fixed Effects. ; Other versions of this item:
Find related papers by JEL classification: C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
This paper has been announced in the following NEP Reports :
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: David G. Blanchflower & Andrew J. Oswald & Peter Sanfey, 1992.
"Wages, Profits and Rent-Sharing ,"
NBER Working Papers
4222, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Blanchflower, David G & Oswald, Andrew J & Sanfey, Peter, 1996.
"Wages, Profits, and Rent-Sharing ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 111(1), pages 227-51, February.
[Downloadable!] (restricted) Richard A. Lester, 1952.
"A range theory of wage differentials ,"
Industrial and Labor Relations Review ,
ILR Review, ILR School, Cornell University, vol. 5(4), pages 483-500, July.
Margolis, David N. & Salvanes, Kjell G., 2001.
"Do Firms Really Share Rents with Their Workers? ,"
IZA Discussion Papers
330, Institute for the Study of Labor (IZA).
[Downloadable!]
Other versions: Hildreth, Andrew K G & Oswald, Andrew J, 1997.
"Rent-Sharing and Wages: Evidence from Company and Establishment Panels ,"
Journal of Labor Economics ,
University of Chicago Press, vol. 15(2), pages 318-37, April.
[Downloadable!] (restricted)
Other versions:
Hilderth, A.K. & Oswald, A.J., 1993.
"Rent-Sharing and Wages: Evidence form Company and Establishment Panels ,"
Economics Series Working Papers
99154, University of Oxford, Department of Economics.
Andrew K.G. Hildreth and Andrew J. Oswald, .
"Rent-Sharing and Wages: Evidence from Company and Establishment Panels ,"
Economics Discussion Papers
425, University of Essex, Department of Economics.
Marcello Estevao & Stacey Tevlin, 2000.
"Do firms share their success with workers? The response of wages to product market conditions ,"
Finance and Economics Discussion Series
2000-17, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!]
Other versions: John M. Abowd & Francis Kramarz & David N. Margolis, 1994.
"High-Wage Workers and High-Wage Firms ,"
CIRANO Working Papers
94s-23, CIRANO.
[Downloadable!]
Other versions:
Abowd, J.M. & Kramarz, F. & Margolis, D.N., 1995.
"High-Wage Workers and High-Wage Firms ,"
Cahiers de recherche
9503, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
Abowd, J.M. & Kramarz, F. & Margolis, D.N., 1995.
"High-Wage Workers and High-Wage Firms ,"
Cahiers de recherche
9503, Universite de Montreal, Departement de sciences economiques.
[Downloadable!] John M. Abowd & Francis Kramarz & David N. Margolis, 1994.
"High Wage Workers and High Wage Firms ,"
NBER Working Papers
4917, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) John M. Abowd & Francis Kramarz & David N. Margolis, 1999.
"High Wage Workers and High Wage Firms ,"
Econometrica ,
Econometric Society, vol. 67(2), pages 251-334, March.
Beaudry, Paul & DiNardo, John, 1991.
"The Effect of Implicit Contracts on the Movement of Wages over the Business Cycle: Evidence from Micro Data ,"
Journal of Political Economy ,
University of Chicago Press, vol. 99(4), pages 665-88, August.
[Downloadable!] (restricted)
Paul Oyer, 2004.
"Why Do Firms Use Incentives That Have No Incentive Effects? ,"
Journal of Finance ,
American Finance Association, vol. 59(4), pages 1619-1650, 08.
[Downloadable!] (restricted)
Other versions: Teal, Francis, 1996.
"The Size and sources of economic rents in a developing country manufacturing labour market ,"
Economic Journal ,
Royal Economic Society, vol. 106(437), pages 963-76, July.
[Downloadable!] (restricted)
Other versions: Sandra E. Black & Philip E. Strahan, 2001.
"The Division of Spoils: Rent-Sharing and Discrimination in a Regulated Industry ,"
American Economic Review ,
American Economic Association, vol. 91(4), pages 814-831, September.
[Downloadable!] (restricted)
Arai, Mahmood & Heyman, Fredrik, 2001.
"Wages, Profits and Individual Unemployment Risk : Evidence from Matched Worker-Firm Data ,"
Working Paper Series
172, Trade Union Institute for Economic Research.
[Downloadable!]
Douglas Staiger & James H. Stock, 1997.
"Instrumental Variables Regression with Weak Instruments ,"
Econometrica ,
Econometric Society, vol. 65(3), pages 557-586, May.
Other versions: F. Fakhfakh & F. Fitzroy, 2003.
"Basic Wages and Firm Characteristics : Rent-sharing in French Manufacturing ,"
Working Papers ERMES
0311, ERMES, University Paris 2.
[Downloadable!]
Other versions:
Fathi Fakhfakh & Felix FitzRoy, 2002.
"Basic Wages and Firm Characteristics: Rent-sharing in Frensh Manufacturing ,"
CRIEFF Discussion Papers
0203, Centre for Research into Industry, Enterprise, Finance and the Firm.
[Downloadable!] Fathi Fakhfakh & Felix FitzRoy, 2004.
"Basic Wages and Firm Characteristics: Rent Sharing in French Manufacturing ,"
LABOUR ,
CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd, vol. 18(4), pages 615-631, December.
[Downloadable!] (restricted) Steinar Holden & Fredrik Wulfsberg, 2007.
"Downward nominal wage rigidity in the OECD ,"
Working Paper Series
777, European Central Bank.
[Downloadable!]
Other versions: Krueger, Alan B & Summers, Lawrence H, 1988.
"Efficiency Wages and the Inter-industry Wage Structure ,"
Econometrica ,
Econometric Society, vol. 56(2), pages 259-93, March.
[Downloadable!] (restricted)
Oswald, Andrew, 1996.
"Rent-Sharing in the Labor Market ,"
The Warwick Economics Research Paper Series (TWERPS)
474, University of Warwick, Department of Economics.
[Downloadable!]
Francis Kramarz, 2003.
"Wages and International Trade ,"
Working Papers
2003-27, Centre de Recherche en Economie et Statistique.
[Downloadable!]
Other versions: Mahmood Arai, 2003.
"Wages, Profits, and Capital Intensity: Evidence from Matched Worker-Firm Data ,"
Journal of Labor Economics ,
University of Chicago Press, vol. 21(3), pages 593-618, July.
[Downloadable!]
Other versions: Zvi Griliches & Jerry A. Hausman, 1984.
"Errors in Variables in Panel Data ,"
NBER Technical Working Papers
0037, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Hartog, Joop & Pereira, Pedro T. & Vieira, José A.C., 1999.
"Inter-industry Wage Dispersion in Portugal: high but falling ,"
IZA Discussion Papers
53, Institute for the Study of Labor (IZA).
[Downloadable!]
Abowd, John M & Lemieux, Thomas, 1993.
"The Effects of Product Market Competition on Collective Bargaining Agreements: The Case of Foreign Competition in Canada ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 108(4), pages 983-1014, November.
[Downloadable!] (restricted)
Other versions: Joop Hartog & Pedro Pereira & José Vieira, 2000.
"Inter-industry Wage Dispersion in Portugal ,"
Empirica ,
Springer, vol. 27(4), pages 353-364, December.
[Downloadable!] (restricted)
Stephen G. Bronars & Melissa Famulari, 2001.
"Shareholder Wealth and Wages: Evidence for White-Collar Workers ,"
Journal of Political Economy ,
University of Chicago Press, vol. 109(2), pages 328-354, April.
[Downloadable!] (restricted)
Nickell, Stephen, 1999.
"Product markets and labour markets1 ,"
Labour Economics ,
Elsevier, vol. 6(1), pages 1-20, March.
[Downloadable!] (restricted)
Nekby, Lena, 2003.
"Gender differences in rent sharing and its implications for the gender wage gap, evidence from Sweden ,"
Economics Letters ,
Elsevier, vol. 81(3), pages 403-410, December.
[Downloadable!] (restricted)
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Robert Plasman & Tojerow & François Rycx, 2006.
"Industry Wage Differentials, Unobserved Ability, and Rent-Sharing: Evidence from Matched Worker-Firm Data, 1995-2002 ,"
Working Papers DULBEA
06-14.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA).
[Downloadable!]
Other versions:
Robert Plasman & François Rycx & Ilan Tojerow, 2006.
"Industry wage differentials, unobserved ability, and rent-sharing : Evidence from matched worker-firm data, 1995-2002 ,"
Research series
200610-2, National Bank of Belgium.
[Downloadable!] Robert Plasman & François Rycx & Ilan Tojerow, 2006.
"Industry Wage Differentials, Unobserved Ability, and Rent-Sharing: Evidence from Matched Worker-Firm Data, 1995-2002 ,"
IZA Discussion Papers
2387, Institute for the Study of Labor (IZA).
[Downloadable!] Kuhn, Johan Moritz, 2007.
"My Pay is Too Bad (I Quit). Your Pay is Too Good (You're Fired) ,"
Working Papers
07-5, University of Aarhus, Aarhus School of Business, Department of Economics.
[Downloadable!]
Pedro S. Martins, 2004.
"Do Foreign Firms Really Pay Higher Wages? : Evidence from Different Estimators ,"
CRIEFF Discussion Papers
0409, Centre for Research into Industry, Enterprise, Finance and the Firm.
[Downloadable!]
Other versions: Gürtzgen, Nicole, 2005.
"Rent-Sharing and Collective Bargaining Coverage ? Evidence from Linked Employer-Employee Data ,"
ZEW Discussion Papers
05-90, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
[Downloadable!]
Robert Plasman & François Rycx & Ilan Tojerow, 2007.
"Wage Differentials in Belgium: The Role of Worker and Employer Characteristics ,"
Working Papers DULBEA
07-12.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA).
[Downloadable!]
Other versions: Philip Du Caju & François Rycx & Ilan Tojerow, 2008.
"Rent-Sharing and the Cyclicality of Wage Differentials ,"
Working Papers CEB
08-035.RS, Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, Centre Emile Bernheim (CEB).
[Downloadable!]
Other versions:
Philip De Caju & François Rycx & Ilan Tojerow, 2008.
"Rent-Sharing and the Cyclicality of Wage Differentials ,"
Working Papers DULBEA
08-23.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA).
[Downloadable!] Du Caju, Philip & Rycx, Francois & Tojerow, Ilan, 2008.
"Rent-Sharing and the Cyclicality of Wage Differentials ,"
IZA Discussion Papers
3844, Institute for the Study of Labor (IZA).
[Downloadable!] Martins, Pedro S., 2004.
"Firm-Level Social Returns to Education ,"
IZA Discussion Papers
1382, Institute for the Study of Labor (IZA).
[Downloadable!]
Other versions:
Pedro S. Martins, 2004.
"Firm-Level Social Returns to Education ,"
CRIEFF Discussion Papers
0404, Centre for Research into Industry, Enterprise, Finance and the Firm.
[Downloadable!] Pedro S. Martins & Jim Jin, 2008.
"Firm-Level Social Returns to Education ,"
Working Papers
9, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
[Downloadable!] Pedro S. Martins, 2007.
"Heterogeneity in Real Wage Cyclicality ,"
IZA Discussion Papers
2929, Institute for the Study of Labor (IZA).
[Downloadable!]
Other versions: Guy Navon & Ilan Tojerow, 2006.
"The Effects of Rent-Sharing on the Gender Wage Gap in the Israeli Manufacturing Sector ,"
IZA Discussion Papers
2361, Institute for the Study of Labor (IZA).
[Downloadable!]
Armando João Dalla Costa, 2005.
"Sucessão E Sucesso Nas Empresas Familiares ,"
Working Papers
0017, Universidade Federal do Paraná, Department of Economics.
[Downloadable!]
Pedro S. Martins & Luiz A. Esteves, 2006.
"Is There Rent Sharing In Developing Countries? Matched-Panel Evidence from Brazil ,"
IZA Discussion Papers
2317, Institute for the Study of Labor (IZA).
[Downloadable!]
Other versions:
Pedro S. Martins & Luiz A. Esteves, 2008.
"Is There Rent Sharing in Developing Countries? Matched-Panel Evidence from Brazil ,"
Working Papers
14, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
[Downloadable!] Pedro S. Martins & Luiz Alberto Esteves, 2006.
"Is There Rent Sharing In Developing Countries? Matched-Panel Evidence From Brazil ,"
Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting]
158, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
[Downloadable!] Pedro Martins & Luiz Alberto Esteves, 2007.
"Is There Rent Sharing In Developing Countries? Matched-Panel Evidence from Brazil ,"
Working Papers
0060, Universidade Federal do Paraná, Department of Economics.
[Downloadable!] W. Jos Jansen & Ad C. J. Stokman, 2006.
"International Rent Sharing and Domestic Labour Markets: A Macroeconomic Analysis ,"
Review of World Economics (Weltwirtschaftliches Archiv) ,
Springer, vol. 142(4), pages 792-813, December.
[Downloadable!] (restricted)
Other versions:
W. Jos Jansen & Ad C.J. Stokman, 2003.
"International Rent Sharing and Domestic Labor Markets: A Macroeconomic Analysis ,"
Macroeconomics
0312008, EconWPA.
[Downloadable!] W. Jos Jansen & Ad C.J. Stokman, 2003.
"International rent sharing and domestic labour markets: a macroeconomic analaysis ,"
WO Research Memoranda (discontinued)
749, Netherlands Central Bank, Research Department.
[Downloadable!] W. Jos Jansen & Ad C.J. Stokman, 2003.
"International Rent Sharing and Domestic Labour Markets: A Macroeconomic Analysis ,"
MEB Series (discontinued)
2003-14, Netherlands Central Bank, Monetary and Economic Policy Department.
[Downloadable!] Bernd Görzig & Martin Gornig & Axel Werwatz, 2006.
"Firm Specific Wage Spread in Germany - Decomposition of regional differences in inter firm wage dispersion ,"
SFB 649 Discussion Papers
SFB649DP2006-045, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
[Downloadable!]
Access and
download statistics Did you know? IDEAS also computes impact factors for journals and working paper series.
This page was last updated on 2009-11-22.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .