Micro-Evidence on Rent Sharing from Different Perspectives

Sabien Dobbelaere and Jacques Mairesse

No 4871, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This article provides evidence of rent sharing from orthogonal directions by exploiting different dimensions in the same data. Taking advantage of a rich matched employer-employee dataset for France over the period 1984-2001, we consistently compare across-industry heterogeneity in rent-sharing parameters derived from three different approaches. The accounting approach and the standard labor economics approach are compatible with distinct labor bargaining settings (right-to-manage, efficient bargaining, labor hoarding) whereas the productivity approach hinges on the assumption of efficient bargaining. Across the different approaches, we evidently find differences in dispersion of the rent-sharing parameter estimates which could be attributable to differences in modeling assumptions and/or data requirements but these estimates lie within a comparable range. We interpret the latter finding as lending empirical support to efficient bargaining as the nature of the bargaining process in France over the considered period.

Keywords: rent sharing; wage equation; production function; matched employer-employee data (search for similar items in EconPapers)
JEL-codes: C23 D21 J31 J51 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2010-04
New Economics Papers: this item is included in nep-eff and nep-lab
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Citations: View citations in EconPapers (4)

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Working Paper: Micro-evidence on Rent Sharing from Different Perspectives (2008)
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