The aim of this paper is to examine rent sharing under a heterogeneous workforce using Finnish linked employer‐employee data in 1987‐1998. Rent sharing is one component of the empirically estimated firm‐effect and depends on the sensitivity of firm‐level payments to quasi‐rents. It is...

This study uses linked employer-employee data from Finland over the period 1989-1996 to examine human capital, wage formation and its relation to firm characteristics such as high wages in large firms. The mean wage differential between plants in the 10th and 90th size classes equals 21% of the...

This volume considers the development of the wage formation and wage bargaining institutions as a response to changes in the bargaining environment. These changes include a lower level of inflation and the growth in intraindustrial trade as firms have become more specialised. The response to...