Rent sharing and wages
Pedro S. Martins
This paper overviews some of the main themes in the literature that researches the link between firms’ profitability and workers’ wages. It includes a survey of the literature – which finds systematic evidence of rent sharing –, a description of different econometric methods and data sources, a reference to economic policy issues, and some suggestions for further research.
JEL Codes: D31, J31.Keywords :
wage structures, profits, endogeneity.
• Introduction
• Research methodologies
• Data used and their relative merits
• Some main empirical results
• Consequences for economic policy
• Tracks for future research
• References