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The Impact of Privatisation on Wages: Evidence from the Portugese Banking Industry

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  • Monteiro, Natalia Pimenta

    (University of Warwick)

Abstract

This paper adopts a difference-in-differences estimator to examine the impact of privatisation on wages in the Portuguese banking industry for the period 1989-97. The design of the reform and the nature of dataset employed (matched employer-employee) provided a particularly important opportunity to analyse the effects of privatisation on different demographic groups, using multiple control groups, and considering the timing of the effects. The empirical evidence suggests a U-shaped relationship between wage variation and time period of restructuring, regardless of the choice of the comparison group, for those employees, either men or women, retained by privatised firms.

Suggested Citation

  • Monteiro, Natalia Pimenta, 2003. "The Impact of Privatisation on Wages: Evidence from the Portugese Banking Industry," Royal Economic Society Annual Conference 2003 156, Royal Economic Society.
    • Handle: RePEc:ecj:ac2003:156
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    Cited by:

    1. Natalia Pimenta Monteiro, 2010. "Using propensity matching estimators to evaluate the impact of privatization on wages," Applied Economics, Taylor & Francis Journals, vol. 42(10), pages 1293-1313.
    2. Margarita Carvalho & João Cerejeira, 2019. "Mergers and Acquisitions and wage effects in the Portuguese banking sector," NIPE Working Papers 07/2019, NIPE - Universidade do Minho.
    3. Orietta DESSY & Massimo FLORIO, 2004. "Workers' earnings in the UK before and after privatisation: a study of five industries," Departmental Working Papers 2004-13, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    4. Alberto Chong & Gianmarco León, 2007. "Privatized Firms, Rule of Law and Labor Outcomes in Emerging Markets," Research Department Publications 4524, Inter-American Development Bank, Research Department.
    5. Natália Monteiro, 2009. "Regulatory reform and labour earnings in Portuguese banking," Empirical Economics, Springer, vol. 36(3), pages 557-574, June.
    6. Alberto Chong & Gianmarco Leon, 2009. "Privatised Firms and Labour Outcomes in Emerging Markets," Journal of Development Studies, Taylor & Francis Journals, vol. 45(9), pages 1513-1525.
    7. Noemí Peña-Miguel & Beatriz Cuadrado-Ballesteros, 2021. "Effect of privatisation on income inequality: a European analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(3), pages 697-716, August.
    8. Alberto Chong & Gianmarco León, 2007. "Empresas privatizadas, instituciones y consecuencias laborales en paises emergentes," Research Department Publications 4525, Inter-American Development Bank, Research Department.

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    More about this item

    Keywords

    privatisation; wages; Portugese banking industry; difference-in-difference;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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