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The Extent of Rent Sharing along the Wage Distribution

Listed author(s):
  • Alessia Matano

    ()

    (Universitat de Barcelona, AQR-IREA and University of Rome “La Sapienza”, Dipartimento di Analisi Economiche e Sociali.)

  • Paolo Naticchioni

    ()

    (Roma Tre University and IZA, Via Chiabrera 199 – 00145 Rome (IT).)

The relation between rent sharing and wages has generally been evaluated on average wages. This paper uses a unique employer-employee panel database to investigate the extent of rent sharing along the wage distribution in Italy. We apply quantile regression techniques and control for national level bargaining, unobserved worker and firm heterogeneity and endogeneity. Our findings show that the extent of rent-sharing decreases along the wage distribution, suggesting that unskilled workers benefit most from firms’ rents. By applying quantile regressions by occupational categories, we show that the decreasing pattern is mainly driven by blue collar workers, while estimates for white collars are higher and basically constant along the wage distribution. We also provide evidence that unions might represent one of the driver of our findings.

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File URL: http://www.ub.edu/irea/working_papers/2017/201704.pdf
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Paper provided by University of Barcelona, Research Institute of Applied Economics in its series IREA Working Papers with number 201704.

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Length: 35 pages
Date of creation: Feb 2017
Date of revision: Feb 2017
Handle: RePEc:ira:wpaper:201704
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  1. 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 318-337, April.
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