The Decline in Rent Sharing

Brian Bell; Pawel Bukowski; S Machin

doi:10.1086/724570

The Decline in Rent Sharing

Brian Bell, Pawel Bukowski^*, S Machin

^*Corresponding author for this work

Economics

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1 Citation (Scopus)

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Abstract

The evolution of rent sharing is studied. Based on a panel of the top 300 publicly quoted British companies over 35 years and using excess stock market returns to patenting activity as an instrument for economic rents, the paper reports evidence of a significant fall over time in the pass-through from rents to wages. It confirms that wages do respond to firm-level shocks to economic rents, but by significantly less after 2000 than during the 1980s and 1990s. The evidence of decline is robust, corroborated with alternative instruments and industry-level analysis for the United States and the European Union.

Original language	English
Pages (from-to)	683-716
Number of pages	34
Journal	JOURNAL OF LABOR ECONOMICS
Volume	42
Issue number	3
Early online date	6 May 2024
DOIs	https://doi.org/10.1086/724570
Publication status	Published - Jul 2024

Keywords

Rent sharing
Patents

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10.1086/724570

The decline in rent_Bell_publishedonline06May2024_Green_AAMAccepted author manuscript, 931 KBLicence: CC BY

https://eprints.lse.ac.uk/119448/

Cite this

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The Decline in Rent Sharing

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Keywords

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