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Firm Ownership and Rent Sharing

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  • Natália Monteiro

    ()

  • Miguel Portela

    ()

  • Odd Straume

    ()

Abstract

We analyse - theoretically and empirically - how private versus public ownership of firms affects the degree of rent sharing between firms and their workers. Using a particularly rich linked employer-employee dataset from Portugal, covering a large number of corporate ownership changes across a wide spectrum of economic sectors over more than 20 years, we find a positive relationship between private ownership and rent sharing. Based on our theoretical analysis, this result cannot be explained by private firms being more profit oriented than public ones. However, the result is consistent with privatisation leading to less job security, implying stronger efficiency wage effects.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Article provided by Springer in its journal Journal of Labor Research.

Volume (Year): 32 (2011)
Issue (Month): 3 (September)
Pages: 210-236

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Handle: RePEc:spr:jlabre:v:32:y:2011:i:3:p:210-236

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Web page: http://www.springer.com/economics/journal/12122

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Related research

Keywords: Rent sharing; Private vs public ownership; Panel data; J45; D21; C23;

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References

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Citations

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Cited by:
  1. Paulo Bastos & Natália Pimenta Monteiro & Odd Rune Straume, 2012. "Privatization and corporate restructuring," NIPE Working Papers 10/2012, NIPE - Universidade do Minho.
  2. Monteiro, Natália Pimenta & Portela, Miguel & Straume, Odd Rune, 2010. "Firm Ownership and Rent Sharing," IZA Discussion Papers 4909, Institute for the Study of Labor (IZA).
  3. Adelaide Figueiredo & Fernanda Figueiredo & Natália P. Monteiro & Odd Rune Straume, 2010. "Restructuring in privatised firms:a Statis approach," NIPE Working Papers 16/2010, NIPE - Universidade do Minho.
  4. Özlem Eren & James Peoples, 2013. "FDI activity and worker compensation: evidence from US non-manufacturing industries," Journal of Economics and Finance, Springer, vol. 37(3), pages 319-338, July.

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