Labor Market Reform and Rent Sharing: A Quasi-Experimental Experience
23 Pages Posted: 7 Nov 2013 Last revised: 11 Mar 2014
Date Written: March 10, 2014
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: Suggested Citation