Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/263480 
Year of Publication: 
2022
Series/Report no.: 
IZA Discussion Papers No. 15264
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We examine heterogeneous rent-sharing in New Zealand using LEED data. Using a refined measures of quasi-rents per worker, we find that 20% to 30% of workers are in zero-excess-rent firms - disproportionately women, Māori or Pacific peoples, low-qualified workers, and those in hospitality, admin services, and retail industries,. The overall rent-sharing elasticity of 0.03 is equivalent to $38 higher earnings per $1,000 of excess rents per worker. Sharing varies by qualification, tenure, and ethnicity, but not by firm size or age. In most industries, workers receive $1,500-$2,000 of rents per year. Sharing is highest in auxiliary finance and professional services sectors and lowest in grocery retailing, food and beverage manufacturing and utilities. There is some evidence of insurance-type behaviour by firms. Differences in bargaining power are also likely to affect rent sharing variation.
Subjects: 
wage determination
rent-sharing
imperfect competition
JEL: 
J31
J71
J10
D22
Document Type: 
Working Paper

Files in This Item:
File
Size
2.07 MB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.