The relation between rent sharing and wages has generally been evaluated on average wages. This article 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 drivers of our findings.

The extent of rent sharing along the wage distribution / Matano, A; Naticchioni, P. - In: BRITISH JOURNAL OF INDUSTRIAL RELATIONS. - ISSN 0007-1080. - 55:4(2017), pp. 751-777. [10.1111/bjir.12234]

The extent of rent sharing along the wage distribution

Matano A;
2017

Abstract

The relation between rent sharing and wages has generally been evaluated on average wages. This article 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 drivers of our findings.
2017
rent sharing; unobserved heterogeneity; wage distribution;quantile regressions; quantile instrumental variables
01 Pubblicazione su rivista::01a Articolo in rivista
The extent of rent sharing along the wage distribution / Matano, A; Naticchioni, P. - In: BRITISH JOURNAL OF INDUSTRIAL RELATIONS. - ISSN 0007-1080. - 55:4(2017), pp. 751-777. [10.1111/bjir.12234]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11573/1446601
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