Cookies?
Library Header Image
LSE Research Online LSE Library Services

Rent sharing and inclusive growth

Bell, Brian, Bukowski, Pawel ORCID: 0000-0003-3795-6308 and Machin, Stephen ORCID: 0009-0004-8130-2701 (2018) Rent sharing and inclusive growth. CEP Discussion Papers (CEPDP1584). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

[img] Text - Published Version
Download (754kB)

Abstract

The long-run evolution of rent sharing is empirically studied. Based upon a comprehensive and harmonized panel of the top 300 publicly quoted British companies over thirty five years, the paper reports evidence of a significant fall over time in the extent to which firms share rents with workers. It confirms that companies do share their profits with employees, but at much smaller scale today than they did during the 1980s and 1990s. This is a robust finding, corroborated with industry-level analysis for the US and EU. The decline in rent sharing is coincident with the rise of product market power that has occurred as worker bargaining power has dropped. Although firms with more market power previously shared more of their profits, they experienced a stronger fall in rent sharing after 2000.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk/
Additional Information: © 2018 The Authors
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HD Industries. Land use. Labor
JEL classification: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J30 - General
Date Deposited: 11 Jan 2019 14:20
Last Modified: 25 Oct 2024 13:50
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/91707

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics