Reflets et Perspectives, XLVI, 2007/2-3 — 23 Rent Sharing and Wages

Abstract – This paper overviews some of the main themes in the literature that researches the link between firms ’ profitability and workers ’ wages. It includes a survey of the literature – which finds systematic evidence of rent sharing –, a description of different econometric methods and data sources, a reference to economic policy issues, and some suggestions for further research. Key words – wage structures, profits, endogeneity.