The decline in rent sharing

Bell, Brian, Bukowski, Pawel ORCID: 0000-0003-3795-6308 and Machin, Stephen ORCID: 0009-0004-8130-2701 (2024) The decline in rent sharing. Labor Economics, 42 (3). 683 - 716. ISSN 0927-5371

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Abstract

The evolution of rent sharing is studied. Based on a panel of the top 300 publicly quoted British companies over 35 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 during the 1980s and 1990s. The evidence of decline is robust, corroborated with alternative instruments and industrylevel analysis for the United States and the European Union.

Item Type:	Article
Official URL:	https://www.journals.uchicago.edu/toc/jole/current
Additional Information:	© 2024 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:	19 Nov 2024 03:39
URI:	http://eprints.lse.ac.uk/id/eprint/119448

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