@TechReport{iza:izadps:dp1376,
            	author={Martins, Pedro S.},
            	title={Rent Sharing Before and After the Wage Bill},
            	year={2004},
	month={Nov},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={1376},
            	url={https://www.iza.org/publications/dp1376},
	abstract={Many biases plague the estimation of rent sharing in labour markets. Using a Portuguese
matched employer-employee panel, these biases are addressed in this paper in three
complementary ways: 1) Controlling directly for the fact that firms that share more rents will,
ceteris paribus, have lower net-of-wages profits. 2) Instrumenting profits via interactions
between the exchange rate and the share of exports in firms’ total sales. 3) Considering firm
or firm/worker spell fixed effects and highlighting the role of downward wage rigidity. These
approaches clarify conflicting findings in the literature and result, in our preferred
specification, in a Lester range of pay dispersion of 56%, also shown to be robust to a
number of competitive interpretations.},
	keywords={rent sharing;matched employer-employee data;fixed effects;instrumental variables},
            }