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Labor Market Reform and Rent Sharing: A Quasi-Experimental Experience

23 Pages Posted: 7 Nov 2013 Last revised: 11 Mar 2014

Ambra Poggi

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS)

Rosella Nicolini

Universitat Autònoma de Barcelona

Date Written: March 10, 2014

Abstract

In this paper, we analyze the wage effects of the adoption of a labor reform aiming at making labor institutions more flexible. We are working with a quasi-experimental setting referring to a sample of Italian companies before and after the introduction of the Treu Reform (1997). Our IV-estimations confirm that this reform not only increased workers’ wages via rent sharing, but also fuelled a convergence process of the elasticity between rent sharing and wages across the sectors.

Keywords: Rent sharing, IV estimation

JEL Classification: C36; J30; J50

Suggested Citation

Poggi, Ambra and Nicolini, Rosella, Labor Market Reform and Rent Sharing: A Quasi-Experimental Experience (March 10, 2014). Available at SSRN: https://ssrn.com/abstract=2351136 or http://dx.doi.org/10.2139/ssrn.2351136

Ambra Poggi (Contact Author)

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS) ( email )

Piazza dell'Ateneo Nuovo, 1
Milan, 20126
Italy

Rosella Nicolini

Universitat Autònoma de Barcelona ( email )

Edifici B
Campus UAB
Bellaterra, Barcelona 08193
Spain

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