Ownership, Firm Size and Rent Sharing in Bulgaria

Posted: 5 Aug 2004

See all articles by Sabien Dobbelaere

Sabien Dobbelaere

Vrije Universiteit Amsterdam - Department of Economics; Tinbergen Institute; IZA Institute of Labor Economics

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

JEL Classification: C23, D21, J30, P31

Suggested Citation

Dobbelaere, Sabien, Ownership, Firm Size and Rent Sharing in Bulgaria. Labour Economics, Vol. 11, No. 2, pp. 165-189, April 2004. Available at SSRN: https://ssrn.com/abstract=572843

Sabien Dobbelaere (Contact Author)

Vrije Universiteit Amsterdam - Department of Economics ( email )

De Boelelaan 1105
NL- Amsterdam, NL-1081 HV
Netherlands
0031 20 598 28 74 (Phone)

Tinbergen Institute

Keizersgracht 482
NL- Amsterdam, NL-1017 EG
Netherlands

IZA Institute of Labor Economics

P.O. Box 7240
D- Bonn, 53072
Germany

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