The Extent of Rent Sharing along the Wage Distribution

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 10570

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models ; Wage Level and Structure; Wage Differentials ; Labor Contracts ; Firm Performance: Size, Diversification, and Scope
• Subject: rent sharing ; wage distribution ; quantile regressions ; IV quantile regressions ; quantile fixed effects regressions

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Matano, Alessia ; Naticchioni, Paolo
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/161193
• Last update: 10.03.2025, 11:43 AM CET