@techreport{NBERw4222,
 title = "Wages, Profits and Rent-Sharing",
 author = "David G. Blanchflower and Andrew J. Oswald and Peter Sanfey",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "4222",
 year = "1992",
 month = "December",
 URL = "http://www.nber.org/papers/w4222",
 abstract = {The paper uses CPS data from 1964 to 1985 to test for the existence of rent-sharing in US tabor markets, Using an unbalanced panel from the manufacturing sector, and random-effects and fixed-effects specifications, the paper finds that changes in wages are explained by movements in lagged levels of profitability and unemployment. The results appear to be consistent with rent-sharing theory (or a labor contract framework with risk-averse firms) and to be inconsistent with the competitive labor market model. The paper estimates the unemployment elasticity of pay at approximately -0.03, and the profit elasticity of pay at between 0.02 and 0.05.},
}