Rent sharing before and after the wage bill
By: by Pedro S. Martins.
Series: Discussion paper ;; no. 1376; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) ;; no. 1376
Publisher: IZA
Published: 2004
Place of publication: Bonn, Germany
Language: eng
Format: Electronic resource
Subjects: Rent (Economic theory); Wages.; Corporate profits.; Wages -- Portugal.; Corporate profits -- Portugal.
Description: "Many biases plague the estimation of rent sharing in labour markets. Using a Portuguese matched employer-employee panel, these biases are addressed in this paper in three complementary ways: (1) Controlling directly for the fact that firms that share more rents will, ceteris paribus, have lower net-of-wages profits. (2) Instrumenting profits via interactions between the exchange rate and the share of exports in firms' total sales. (3) Considering firm or firm/worker spell fixed effects and highlighting the role of downward wage rigidity. These approaches clarify conflicting findings in the literature and result, in our preferred specification, in a Lester range of pay dispersion of 56%, also shown to be robust to a number of competitive interpretations"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 4/15/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.