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University of Stirling



Wages, profits, and rent-sharing

Blanchflower D, Oswald AJ & Sanfey P (1996) Wages, profits, and rent-sharing. The Quarterly Journal of Economics, 111 (1), pp. 227-251.

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.

The Quarterly Journal of Economics: Volume 111, Issue 1

Author(s)Blanchflower, David; Oswald, Andrew J; Sanfey, Peter
Publication date29/02/1996
PublisherMassachusetts Institute of Technology Press (MIT Press) and Oxford University Press (OUP) for the President and Fellows of Harvard College
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