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Ownership, Firm Size and Rent Sharing in a Transition Country

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  • S. DOBBELAERE

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Abstract

Using a unique 3-digit firm-level data set of all medium and large manufacturing enterprises in Bulgaria covering the years 1997-1998, we investigate how wages are affected by ownership status, firm size and rent sharing. Our pooled OLS, panel and first-difference TSLS estimates clearly point to ownership structure as an important determinant of both the wage level (for given productivity) and the degree of rent sharing. Rent sharing is very pronounced in state-owned firms but far less pronounced in private domestic and foreign firms. The results strongly confirm the existence of a multinational wage premium. In addition, we find weak evidence of a positive firm size-wage effect and a positive effect of firm size on the degree of rent sharing. If these effects exist, they are often more pronounced in private domestic firms.

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Bibliographic Info

Paper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 03/170.

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Length: 33 pages
Date of creation: Jan 2003
Date of revision:
Handle: RePEc:rug:rugwps:03/170

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Keywords: Bulgarian Labour Market; Foreign Ownership; Firm Size; Rent Sharing; Panel Data;

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