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Innovation and Rent Sharing in Corporate Wage Setting in Hungary


  • Gabor Korosi

    () (Institute of Economics Hungarian Academy of Sciences)


Skill biased technical change arrived to Hungary with the transition to market economy. As Hungary integrated into the international economy, technical change progressed much faster in some sectors than in mature market economies. That lead to increasing skill premia, intensive rent sharing, and additional benefits for workers at innovative firms. This paper analyses wage setting at Hungarian firms after the micro-economic restructuring and stabilisation period, in the years 1998-2006, with a special regard to wage determination at innovative firms. Wage setting is characterised by intensive rent-sharing. Premium at innovative firms varies with the way of measuring it, and also changes with the sector and over time.

Suggested Citation

  • Gabor Korosi, 2009. "Innovation and Rent Sharing in Corporate Wage Setting in Hungary," Budapest Working Papers on the Labour Market 0908, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  • Handle: RePEc:has:bworkp:0908

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    More about this item


    innovation; rent sharing; corporate wage setting;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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