The effects of increase in minimum wage on outsourced workers: evidence from Spain

with: Marta Fana and Amaia Palencia-Esteban

Abstract

Much about rent-sharing is still not clear, and this paper aims to shed lights on different dimensions. Currently, rent-sharing is kept homogeneous across workers within the same firm. However, there’s no reason why firms’ pass-through of rents to be the same across all workers within the firm. Does the rent-sharing vary across occupational classes within firms? How does it evolves over time? What are the possible mechanisms behind the dynamics of rent-sharing and its relation with institutional settings?