Labour Market Institutions, Technology and Rent Sharing
Kyoji Fukao (),
Cristiano Perugini () and
Fabrizio Pompei ()
No 13155, IZA Discussion Papers from Institute of Labor Economics (IZA)
In this paper we analyse how labour market institutions and technology affect wage determination through rent sharing. To this aim we first extend the theoretical framework of Estevao and Tevlin (2003) to account for heterogeneity of labour (regular and non-regular workers). The predictions of the model are then tested with detailed industry-level data over four decades (1970-2012) for Japan, where the functioning of labour markets changed significantly along directions (de-unionisation, decline in standard employment and in the role of seniority) similar to the majority of advanced OECD countries. Our results indicate that such labour market evolutions weaken the capacity of regular workers to appropriate rents and might have contributed shaping the long-run wage stagnation observed in Japan. However, more advanced technologies help regular workers to appropriate higher rents.
Keywords: bargaining power; non-regular work; rent-sharing; Japan (search for similar items in EconPapers)
JEL-codes: J30 J41 C23 (search for similar items in EconPapers)
Pages: 33 pages
New Economics Papers: this item is included in nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp13155
Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Access Statistics for this paper
More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().