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Identifying Rent-Sharing Using Firms’ Energy Input Mix

M. Merten et al.

Journal of the European Economic Association2026https://doi.org/10.1093/jeea/jvag006article
AJG 4ABDC A*
Weight
0.50

Abstract

We present causal evidence on the rent-sharing elasticity of German manufacturing firms. We develop a new firm-level Bartik instrument for firm rents that combines the firms’ predetermined energy input mix with national energy carrier price changes. Instrumental variable estimation yields a rent-sharing elasticity of approximately 0.20, implying that a 10% change in rents leads to a 2% change in wages. Rent-sharing induced by energy price variation is asymmetric and driven by energy price increases, such that, on average, workers do not benefit from energy price reductions but are harmed by price increases. Reduced-form evidence shows that a 10% increase in firm-level energy prices depresses firm-level wage growth by 0.34%.

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https://doi.org/https://doi.org/10.1093/jeea/jvag006

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@article{m.2026,
  title        = {{Identifying Rent-Sharing Using Firms’ Energy Input Mix}},
  author       = {M. Merten et al.},
  journal      = {Journal of the European Economic Association},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1093/jeea/jvag006},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.