Firm ownership and rent sharing

Arbeitspapier

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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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 4909

Classification and Topics

• Classification: Wirtschaft ; Public Sector Labor Markets ; Firm Behavior: Theory ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
• Subject: Rent sharing ; private vs public ownership ; panel data ; Lohnbildung ; Rententheorie ; Eigentümerstruktur ; Öffentliches Unternehmen ; Privatisierung ; Effizienzlohn ; Arbeitsplatzsicherung ; Schätzung ; Portugal

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Monteiro, Natália Pimenta ; Portela, Miguel ; Straume, Odd Rune
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/36778