Rent-Sharing and the Cyclicality of Wage Differentials

Philip De Caju (), Francois Rycx () and Ilan D. Tojerow ()
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Philip De Caju: National Bank of Belgium

No 08-23.RS, Working Papers DULBEA from Université libre de Bruxelles, Department of Applied Economics (DULBEA)

Abstract: This paper investigates inter-industry wage differentials (IWD) in Belgium, taking advantage of a unique matched employer-employee dataset covering the years 1999-2005. Findings show the existence of large wage differentials among workers with the same observed characteristics and working conditions, employed in different sectors. These differentials are persistent and no particular trend is observed. However, their dispersion appears to show a cyclical pattern over time. Further results indicate that the instrumented elasticity between wages and profits is found to be quite stable over time and varies between 0.034 and 0.043. This rent-sharing phenomenon accounts for a large fraction of IWDs.

Keywords: Industry wage differentials; Rent-sharing; Matched employer-employee data. (search for similar items in EconPapers)
JEL-codes: D31 J31 J41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Date: 2008-11
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Related works:
Working Paper: Rent-Sharing and the Cyclicality of Wage Differentials (2008)
Working Paper: Rent-Sharing and the Cyclicality of Wage Differentials (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:dul:wpaper:08-23rs

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