Wages, Profits and Individual Unemployment Risk: Evidence from Matched Worker-Firm Data

Mahmood Arai () and Fredrik Heyman ()

No 172, Working Paper Series from Trade Union Institute for Economic Research

Abstract: We present new evidence on the extent of rent sharing based on a large panel of matched worker-firm data for Sweden. Controlling for worker and firm heterogeneity, as well as examining the problem of endogeneity of profits, we report evidence implying the existence of rent sharing. Another result is that unemployment risk, aggregated at the firm and various industry levels, has a negative effect on individual workers' wages after controlling for individual differences in unemployment risk.

Keywords: Wages; Profits; Rent-Sharing; Wage-curve (search for similar items in EconPapers)
JEL-codes: D31 J31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Date: 2001-12-13
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