The decline in rent sharing

Bell, Brian, Bukowski, Pawel ORCID: 0000-0003-3795-6308 and Machin, Stephen (2023) The decline in rent sharing. Labor Economics. ISSN 0927-5371 (In Press)

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Abstract

The evolution of rent sharing is studied. Based upon a panel of the top 300 publicly quoted British companies over thirty-five years and using excess stock market returns to patenting activity as an instrument for economic rents, the paper reports evidence of a significant fall over time in the pass-through from rents to wages. It confirms that wages do respond to firm-level shocks to economic rents, but by significantly less after 2000 than they did during the 1980s and 1990s. The evidence of decline is a robust finding, corroborated with alternative instruments and industry-level analysis for the US and EU.

Item Type:	Article
Additional Information:	© 2023 University of Chicago Press.
Divisions:	Economics
Subjects:	H Social Sciences > HB Economic Theory
JEL classification:	D - Microeconomics > D3 - Distribution > D30 - General
Date Deposited:	20 Jun 2023 10:12
Last Modified:	06 Mar 2024 13:48
URI:	http://eprints.lse.ac.uk/id/eprint/119448

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