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Firm ownership and rent sharing

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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.

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Paper provided by NIPE - Universidade do Minho in its series NIPE Working Papers with number 13/2010.

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Date of creation: 2010
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Handle: RePEc:nip:nipewp:13/2010

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Keywords: rent sharing; private vs public ownership; panel data;

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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. 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.
  3. Natália P. Monteiro & Miguel Portela & Odd Rune Straume, 2010. "Firm ownership and rent sharing," NIPE Working Papers 13/2010, NIPE - Universidade do Minho.
  4. 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.

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