RENT CREATION AND RENT SHARING: NEW MEASURES AND IMPACTS ON TOTAL FACTOR PRODUCTIVITY

G. Cette*, J. Lopez, J. Mairesse

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

3 Citations (Web of Science)

Abstract

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)

Original languageEnglish
Pages (from-to)1915-1938
Number of pages24
JournalEconomic Inquiry
Volume57
Issue number4
DOIs
Publication statusPublished - Oct 2019

JEL classifications

  • 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"

Keywords

  • MARKET REGULATIONS
  • INNOVATION
  • COMPETITION
  • PANEL

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