In this paper we show that rent-sharing plays a role in explaining the glass ceiling effect. We make use of a unique employer–employee panel database for Italy from 1996 to 2003, which allows controlling for observed individual and firm heterogeneity and for collective bargaining. Moreover, by...

Using microdata from the 2002-2006 Colombian Continuous Household Survey, we find an elasticity of individual wages to local unemployment rates of - 0.07. However, the elasticity for informal workers is significantly higher, a result which is consistent with efficiency wage theoretical models...