The Extent of Rent Sharing Along the Wage Distribution

37 Pages Posted: 27 Feb 2017

See all articles by Alessia Matano

Alessia Matano

University of Rome I

Paolo Naticchioni

University of Rome I; University of Cassino

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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

JEL Classification: C33, J31, J41, L25

Suggested Citation

Matano, Alessia and Naticchioni, Paolo, The Extent of Rent Sharing Along the Wage Distribution. IZA Discussion Paper No. 10570. Available at SSRN: https://ssrn.com/abstract=2923656

Alessia Matano (Contact Author)

University of Rome I ( email )

Piazzale Aldo Moro 5
Roma, Rome 00185
Italy

Paolo Naticchioni

University of Rome I ( email )

Piazzale Aldo Moro 5
Roma, Rome 00185
Italy

University of Cassino ( email )

Cassino
Italy

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