K.U.Leuven, Faculty of Economics and Applied Economics : Department of Economics
CES - Discussion paper series (DPS) 00.19 pages:1-22
This paper is the first which provides evidence for rent-sharing in Belgium using firm level data. It uses a panel of annual firm level data and shows that a rise in the firm’s profitability leads after some years to an increase in worker’s income. The profit-per-head elasticity of wages is about 0.1 and Lester’s range of wages is estimated at approximately 60 percent of the mean wage.