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Does Rent-Sharing Exist in Belgium? an Empirical Analysis Using Firm Level Data

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  • Maarten Goos
  • Jozef Konings

Abstract

This paper is the first which provides evidence for rent-sharing in Belgium using firm level data. It uses a panel of annual firm level data and shows that a rise in the firm’s profitability leads after some years to an increase in worker’s income. The profit-per-head elasticity of wages is about 0.1 and Lester’s range of wages is estimated at approximately 60 percent of the mean wage.

Suggested Citation

  • Maarten Goos & Jozef Konings, 2000. "Does Rent-Sharing Exist in Belgium? an Empirical Analysis Using Firm Level Data," Working Papers of Department of Economics, Leuven ces0019, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    • Handle: RePEc:ete:ceswps:ces0019
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    References listed on IDEAS

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