The Extent of Rent Sharing along the Wage Distribution

Alessia Matano and Paolo Naticchioni

No 201702, AQR Working Papers from University of Barcelona, Regional Quantitative Analysis Group

Abstract: 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.

Keywords: Rent Sharing; Wage Distribution; Quantile Regressions; IV Quantile regressions; Quantile fixed effects regressions. JEL classification: C33; J31; J41; L25. (search for similar items in EconPapers)
Pages: 35 pages
Date: 2017-02, Revised 2017-02
New Economics Papers: this item is included in nep-eur
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Citations: View citations in EconPapers (26)

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http://www.ub.edu/irea/working_papers/2017/201704.pdf (application/pdf)

Related works:
Journal Article: The Extent of Rent Sharing along the Wage Distribution (2017)
Working Paper: The Extent of Rent Sharing along the Wage Distribution (2017)
Working Paper: The Extent of Rent Sharing along the Wage Distribution (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:aqr:wpaper:201702

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