Rent Sharing within Firms

A-Tier
Journal: Journal of Labor Economics
Year: 2022
Volume: 40
Issue: S1
Pages: S17 - S38

Authors (2)

David Cho (not in RePEc) Alan B. Krueger

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This study investigates the extent to which economic rents are shared among different types of workers within firms. We utilize administrative payroll records in order to estimate the elasticity of employee compensation with respect to the price of crude oil at petroleum extraction companies. We find that the elasticity of rent sharing is heterogeneous within firms and significantly higher for workers at the top of the earnings distribution. These results can be rationalized by a bargaining model in which insiders within a firm possess greater power to negotiate over wages.

Technical Details

RePEc Handle
repec:ucp:jlabec:doi:10.1086/718713
Journal Field
Labor
Author Count
2
Added to Database
2026-01-25