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Quarterly Journal of Economics Vol. 111 No. 1 1996

Wages, Profits, and Rent-Sharing

David G. Blanchflower1,2; Andrew J. Oswald3; P. Sanfey4

1 Dartmouth College · 2 National Bureau of Economic Research · 3 University of Warwick · 4 University of Kent

open access

Abstract

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

DOI
10.2307/2946663
Volume
111
Issue
1
Pages
227-251
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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