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Rent-sharing in Portuguese Banking

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Abstract

Using the fixed e¤ects estimator and the dynamic panel data system-GMM estimator, on a sample of 75 banks, covering the period 1988-2005, this paper estimates how wages in the Portuguese banking sector depend on the employers ability to pay. The results indicate that wages are strongly positively correlated with pro?ts even after controlling for ?rm and workforce characteristics. The Lester?s range of wages due to rent-sharing is 46% - 75% of the mean wage in the Portuguese banking sector.

Suggested Citation

  • Natália Pimenta Monteiro & Miguel Portela, 2007. "Rent-sharing in Portuguese Banking," NIPE Working Papers 18/2007, NIPE - Universidade do Minho.
    • Handle: RePEc:nip:nipewp:18/2007
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    References listed on IDEAS

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    1. Hildreth, Andrew K G & Oswald, Andrew J, 1997. "Rent-Sharing and Wages: Evidence from Company and Establishment Panels," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 318-337, April.
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    Cited by:

    1. Natália Monteiro & Miguel Portela & Odd Straume, 2011. "Firm Ownership and Rent Sharing," Journal of Labor Research, Springer, vol. 32(3), pages 210-236, September.

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    More about this item

    Keywords

    rent-sharing; Portuguese banking industry; dynamic panel data.;
    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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