Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/330705 
Year of Publication: 
2025
Citation: 
[Journal:] KDI Journal of Economic Policy [ISSN:] 2586-4130 [Volume:] 47 [Issue:] 3 [Year:] 2025 [Pages:] 115-128
Publisher: 
Korea Development Institute (KDI), Sejong
Abstract: 
Utilising matched employer-employee data from Vietnamese small and medium enterprises (SMEs) surveys spanning the time frame of 2007-2015, we investigate the extent to which firms share economic rents with their employees through wage adjustments. Our analysis reveals rent-sharing elasticity of 0.08-0.1, demonstrating that small firms with limited market power engage in rent sharing in response to increased economic rents, measured as value added per employee. This rent sharing is prominent if a worker is related to an owner and is engaged in non-production jobs. However, the analysis based on worker panel data indicates caution against interpreting the results as causal evidence.
Subjects: 
Rent Sharing
Profits
Vietnam
Small and Medium Enterprises (SMEs)
Matched Employer-Employee Data
JEL: 
J31
J46
O12
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-sa Logo
Document Type: 
Article

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