Ownership, Firm Size and Rent Sharing in a Transition Country

Sabien Dobbelaere

Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium from Ghent University, Faculty of Economics and Business Administration

Abstract: Using a unique 3-digit firm-level data set of all medium and large manufacturing enterprises in Bulgaria covering the years 1997-1998, we investigate how wages are affected by ownership status, firm size and rent sharing. Our pooled OLS, panel and first-difference TSLS estimates clearly point to ownership structure as an important determinant of both the wage level (for given productivity) and the degree of rent sharing. Rent sharing is very pronounced in state-owned firms but far less pronounced in private domestic and foreign firms. The results strongly confirm the existence of a multinational wage premium. In addition, we find weak evidence of a positive firm size-wage effect and a positive effect of firm size on the degree of rent sharing. If these effects exist, they are often more pronounced in private domestic firms.

Keywords: Bulgarian Labour Market; Foreign Ownership; Firm Size; Rent Sharing; Panel Data (search for similar items in EconPapers)
JEL-codes: C23 D21 J30 P31 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2003-01
New Economics Papers: this item is included in nep-eec and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:rug:rugwps:03/170

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