The Extent of Rent Sharing Along the Wage Distribution

27 Pages Posted: 2 Nov 2017

See all articles by Alessia Matano

Alessia Matano

University of Rome I

Paolo Naticchioni

University of Rome I; University of Cassino

Multiple version iconThere are 2 versions of this paper

Date Written: December 2017

Abstract

The relation between rent sharing and wages has generally been evaluated on average wages. This article 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 drivers of our findings.

Suggested Citation

Matano, Alessia and Naticchioni, Paolo, The Extent of Rent Sharing Along the Wage Distribution (December 2017). British Journal of Industrial Relations, Vol. 55, Issue 4, pp. 751-777, 2017. Available at SSRN: https://ssrn.com/abstract=3063624 or http://dx.doi.org/10.1111/bjir.12234

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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