Location of Repository

Wages, profits and rent-sharing

By David G. Blanchflower, Andrew J. Oswald and Peter Sanfey


The paper suggests a new test for rent-sharing in the U.S. labor market. Using an unbalanced\ud panel from the manufacturing sector, it shows that a rise in a sector's profitability leads after some\ud years to an increase in the long-run level of wages in that sector. The paper controls for workers'\ud characteristics, for industry fixed-effects, and for unionism. Lester's range of wages is estimated,\ud for rent-sharing reasons alone, at approximately 24 per cent of the mean wage

Topics: HD
Publisher: MIT Press
Year: 1996
OAI identifier: oai:wrap.warwick.ac.uk:140

Suggested articles



  1. (1952). A Range Theory of Wage Differentials", Industrial and Labor Relations Review, V doi
  2. (1990). Analysis of Panel Data doi
  3. (1991). Appendix: The NBER Trade and Labor Market Databases", doi
  4. (1981). Biases in Dynamic Models with Fixed Effects", doi
  5. (1992). Changes in Relative Wages, 1963-1987: Supply and Demand Factors", doi
  6. (1971). Determinants of Negotiated Increases: An Empirical Wage Analysis", doi
  7. (1980). Differentials: Theory and Measurement", originally published in 1962,
  8. (1990). Econometric Analysis doi
  9. (1988). Efficiency Wages and the Inter-Industry Wage Structure", doi
  10. (1975). Implicit Contracts and Underemployment Equilibria", doi
  11. (1989). Industry Productivity Database", mimeo,
  12. (1989). Industry Rents: Evidence and Implications", Brookings Papers on Economic Activity (Microeconomics), doi
  13. (1991). Insider Effects in Wage Determination: Evidence from Five Countries", European Economic Review, doi
  14. (1990). Insider Forces and Wage Determination", doi
  15. (1990). Insider Power in Wage Determination", doi
  16. (1992). Insiders and Outsiders in Union Models: Theory and Evidence for the US and the UK",
  17. (1987). Inter-Industry Wage Differences and Industry Characteristics", doi
  18. (1988). Internal and External Influences Upon Wage Settlements", doi
  19. (1993). Investments, Holdup, and the Form of Market Contracts", American Economic Review,
  20. (1985). Norms of Distributive Justice in Interest Arbitration", Industrial and Labor Relations Review, doi
  21. (1950). Notes on the Structure of Wages", doi
  22. (1989). Pay Determination and Industrial Prosperity doi
  23. (1986). Random Group Effects and the Precision of Regression Estimates", doi
  24. (1992). Real Wage Determination and RentSharing in Collective Bargaining Agreements", doi
  25. (1987). Reflections on the Inter-Industry Wage Structure", doi
  26. (1992). Rent-Sharing and Wages: Evidence from Company and Establishment Panels", mimeo, doi
  27. (1995). Rent-Sharing in the Labor Market", mimeo, London School of Economics,
  28. (1991). Sources of Intra-Industry Wage Dispersion: How Much Do Employers Matter?", doi
  29. (1989). The Effect of Wage Bargains on the Stock Market Value of the Firm", American Economic Review,
  30. (1993). The Effects of Product Market Competition on Collective Bargaining Agreements: The Case of Foreign Competition in Canada", doi
  31. (1991). The Role of Profitability and Industrial Wages in FirmLevel Wage Determination", Fiscal Studies, doi
  32. (1994). The Wage Curve doi
  33. (1990). The Wage Curve", doi
  34. (1993). Updated Notes on the Interindustry Wage Structure", mimeo, doi
  35. (1990). Wage Bargaining and Profitability: A Disaggregative Analysis", doi
  36. (1970). Wage Bargains, Threshold Effects and the Phillips Curve", doi
  37. (1987). Wage Inflexibility in Britain", doi
  38. (1974). Wages and Employment Under Uncertain Demand", Review of Economic Studies, doi
  39. (1993). Wages and Insider-Outsider Models: Theory and Evidence for the US", mimeo,

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.