Emmanuel Dhyne - Global Forum on Productivity - 20-21 June 2019, Sydney

1. Rent sharing across
Production network
Emmanuel Dhyne, Global Forum on Productivity, Sydney
20/07 – 21/07 2019

2. ◆ Firm level data from 1995
onwards.
◆ Various datasets connected by
unique firm level identifier :
VAT number
◆ Administrative and fiscal data
sources
◆ Network data only available
from 2002
◆ Allows a full description of the
domestic and foreign sales of
Belgian firms
◆ FDI and domestic
participations are covered to
identify (inter)national groups
2
Source(s):
1 Footnote
2 Footnote
The NBB datawarehouse
Firms regiter
Annual
account
register
VAT
declarations
International
trade
Social security
declarations
Balance of
paiement
survey
VAT domestic
customer
declarations

3. ◆ 2 sources :
◇ National Statistical Institute :
- multiple cross-section, structure of earning survey (used f.i. by Rycx and co-authors for various projects).
- Small sample of firms and employees
◇ Cross-road bank of Social Security
- Centralize administrative datasets from Social security institutions from 1997 for main social security
agencies, from 2003 for administrative data sources
- Covers all the population of firms / individuals
- Allows to follow the situation of individuals over time (change in status, change of employers, wages) and
some characteristics (limited number - gender, age, location, citizenship, work experience, education)
3
Source(s):
1 Footnote
2 Footnote
Matched employer-employee data in Belgium

4. ◆ Used to analyse several policy relevant issues
◇ At the Bank : Du Caju, Fuss, Wintr (2009) : wage rigidity in Belgium (part of the ESCB Wage dynamic
network) using 1/3 of the Belgian labor force
◇ Outside the Bank : evaluation of specific labor market policies by Belgian academics (see CBSS website for a
list of research projects based on their data)
4
Source(s):
1 Footnote
2 Footnote
Cross-road bank of Social Security

5. ◆ Restricted to Belgian researchers (universities, research centers)
◆ Either accessible on site (allows to get access to the universe of workers)
◆ Or access to subsamples anonymized by the CBSS
◆ Provided to the researchers, for a given project during a given time period, conditional on approval
by the Statistical Secrecy Committee
◆ Extensions requires new contracts
◆ Costs are charged to the researchers
◆ Long process (1 year from initial contacts to the signature of the contract)
◆ External data sources can be merged by the CBSS before anonymization
5
Source(s):
1 Footnote
2 Footnote
Accessing to cross-road bank dataset

6. 6
Source(s):
1 Footnote
2 Footnote
The NBB production network + CBSS data
◆ Add CBSS data to the NBB data warehouse
◆ Sample of firms : Belgian firms with at least 10 FTE during one year between 2002-2014
◆ For each sampled firms with at least 10 FTE : avg wage by worker type (gender, age, education,
status)
◆ + Sample of 500,000 individuals that worked at least one quarter in a sampled firm during the
2002-2014 period
◆ For each individual : his/her wage and employment history over the 2002-2014 period, employer
id, individual characteristics (gender, age, education, status, working experience)

7. 7
Source(s):
1 Footnote
2 Footnote
Pass-through within and across the boundaries of firms
(ongoing, very preliminary)
◆ Follow up of Tintelnot et al. (2019) on the pass-through of import shocks in the domestic network
◆ Motivation :
◇ Increases in outsourcing and fragmentation of production
- Increases efficiency through specialisation
- Transforms rent sharing between firms and workers
◆ Analyse the firms’ demand shocks transmission to wages (own shock and shocks affecting suppliers
/ customers)
◇ Who benefits from demand shocks ?

8. 8
Source(s):
1 Footnote
2 Footnote
The NBB production network + CBSS data
◆ Sample of firms : Belgian firms with at least 10 FTE during one year between 2002-2014
◆ For each sample firms with at least 10 FTE : avg, wage by worker type (gender, age, education,
status)
◆ + Sample of 500,000 individuals that worked at least one quarter in a sampled firm during the
2002-2014 period
◆ For each individual : his/her wage and employment history over the 2002-2014 period, employer
id, individual characteristics (gender, age, education, status, working experience)

9. 9
Source(s):
1 Footnote
2 Footnote
Empirical strategy
◆ Estimate individual firm responses in labor costs, avg. wage, employment to changes in sales
(instrumented by foreign demand shocks affecting firm i and all his direct and indirect customers).
◆ Estimate suppliers responses in terms of deliveries to Belgian firms and imports to changes in sales

10. 10
Results

11. 11
Within firm pass-through (across time)

12. 12
Within firm pass-through (across time)

13. 13
Within firm pass-through (across time)

14. 14
Blue vs white collars

15. 15
Blue vs white collars

16. 16
Blue vs white collars

17. 17
Across firm pass-through (across time)

18. 18
Across firm pass-through (across time)

19. 19
Heterogeneous pass-through across sectors

20. 20
Heterogeneous pass-through across sectors

21. 21