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  • P-ISSN 2586-2995
  • E-ISSN 2586-4130
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KDI Journal of Economic Policy. Vol. 47, No. 3, August 2025, pp. 115-128

https://doi.org/10.23895/kdijep.2025.47.3.115

× KDI Open Access is a program of fully open access journals to facilitate the widest possible dissemination of high-quality research. All research articles published in KDI JEP are immediately, permanently and freely available online for everyone to read, download and share in terms of the Creative Commons Attribution 4.0 International License.

Sharing Economic Rents with Workers? Evidence from Matched Employer-Employee Data in Vietnam

NOBUAKI YAMASHITA

Author & Article History

Manuscript received 13 August 2024; revision received 14 August 2024; accepted 25 March 2025.

Abstract

Utilising matched employer-employee data from Vietnamese small and medium enterprises (SMEs) surveys spanning the time frame of 2007-2015, we investigate the extent to which firms share economic rents with their employees through wage adjustments. Our analysis reveals rent-sharing elasticity of 0.08-0.1, demonstrating that small firms with limited market power engage in rent sharing in response to increased economic rents, measured as value added per employee. This rent sharing is prominent if a worker is related to an owner and is engaged in non-production jobs. However, the analysis based on worker panel data indicates caution against interpreting the results as causal evidence.

Keywords

Rent Sharing, Profits, Vietnam, Small and Medium Enterprises (SMEs), Matched Employer-Employee Data

JEL Code

J31, J46, O12

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