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The Extent of Rent Sharing along the Wage Distribution

Alessia Matano () and Paolo Naticchioni ()

No 10570, IZA Discussion Papers from Institute for the Study of Labor (IZA)

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 (search for similar items in EconPapers)
JEL-codes: C33 J31 J41 L25 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur and nep-lma
Date: 2017-02
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Forthcoming in: British Journal of Industrial Relation, 2017

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Journal Article: The Extent of Rent Sharing along the Wage Distribution (2017) Downloads
Working Paper: The Extent of Rent Sharing along the Wage Distribution (2017) Downloads
Working Paper: The Extent of Rent Sharing along the Wage Distribution (2017) Downloads
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