We examine the effect of firm profits on wages for individual workers while focusing on the empirical complications associated with estimating the extent of rent-sharing. Controlling for worker and firm fixed-effects and using several instruments to deal with the endogeneity of profits, we...

Swedish data on workers matched with firms' balance-sheet reports are used to examine the relation between wages and firms' ability to pay. Results indicate that experienced and highly educated workers are sorted into profitable firms. Wages are positively correlated with profits and the...

Empirical foundations for the view that high inflation impairs GDP growth are examined using annual data for 115 countries over the period 1960-1995. Taking into account country heterogeneity and time-specific symmetric shocks, as well as endogeneity of inflation and dynamics of GDP growth,...

We study the effects of surname change to Swedish-sounding or neutral names on earnings for immigrants from Asian/African/Slavic countries. To estimate this effect, we exploit the variation resulting from different timing of name changes across individuals during the 1990s. The results imply...