This analysis proposes new measures of rent creation and rent sharing and assesses their impact on productivity on cross-country-industry panel data. We find first that: (1) anticompetitive product market regulations positively affect rent creation and (2) employment protection legislation boosts hourly wages, particularly for low-skill workers. However, we find no significant impact of this employment legislation on rent sharing, as the hourly wage increases are offset by a negative impact on hours worked. Second, using regulation indicators as instruments, we find that rent creation and rent sharing both have a substantial negative impact on total factor productivity. (JEL E22, E24, O30, L50, O43, O47, C23)
- o25 - Industrial Policy
- o47 - "Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence"
- o30 - "Technological Change; Research and Development; Intellectual Property Rights: General"
- o43 - Institutions and Growth
- e24 - "Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital"
- e22 - "Capital; Investment; Capacity"
- MARKET REGULATIONS