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Sharing economic rents with workers? Evidence from matched employer-employee data in Vietnam

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  • Yamashita, Nobuaki

Abstract

Utilising matched employer-employee data from Vietnamese small and medium enterprises (SMEs) surveys spanning the time frame of 2007-2015, we investigate the extent to which firms share economic rents with their employees through wage adjustments. Our analysis reveals rent-sharing elasticity of 0.08-0.1, demonstrating that small firms with limited market power engage in rent sharing in response to increased economic rents, measured as value added per employee. This rent sharing is prominent if a worker is related to an owner and is engaged in non-production jobs. However, the analysis based on worker panel data indicates caution against interpreting the results as causal evidence.

Suggested Citation

  • Yamashita, Nobuaki, 2025. "Sharing economic rents with workers? Evidence from matched employer-employee data in Vietnam," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 47(3), pages 115-128.
    • Handle: RePEc:zbw:kdijep:330705
    DOI: 10.23895/kdijep.2025.47.3.115
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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