Card, David; Devicienti, Francesco; Maida, Agata - In: Review of Economic Studies 81 (2014) 1, pp. 84-111
Rent-sharing by workers can reduce the incentives for investment if some of the returns to sunk capital are captured in higher wages. We propose a simple measure of this "holdup" effect based on the size of the wage offset for firm-specific capital accumulation. Using Social Security earnings...