We present evidence about the role of rent sharing in fostering the interdependence of labourmarkets around the world. Our results draw on a firm-level panel of more than 2,000multinationals and more than 5,000 of their affiliates, covering 47 home and host countries.We find considerable...

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...