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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.
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  • Natália Monteiro & Miguel Portela & Odd Straume, 2011. "Firm Ownership and Rent Sharing," Journal of Labor Research, Springer, vol. 32(3), pages 210-236, September.
    • Handle: RePEc:spr:jlabre:v:32:y:2011:i:3:p:210-236
    DOI: 10.1007/s12122-011-9109-6
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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. Figueiredo, Adelaide & Figueiredo, Fernanda & Monteiro, Natália P. & Straume, Odd Rune, 2012. "Restructuring in privatised firms: A Statis approach," Structural Change and Economic Dynamics, Elsevier, vol. 23(1), pages 108-116.
    3. Natália Monteiro & Miguel Portela & Odd Straume, 2011. "Firm Ownership and Rent Sharing," Journal of Labor Research, Springer, vol. 32(3), pages 210-236, September.
    4. Laszlo Goerke, 2022. "Trade unions and corporate social responsibility," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 177-203, March.
    5. Özlem Eren & James Peoples, 2013. "FDI activity and worker compensation: evidence from US non-manufacturing industries," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 37(3), pages 319-338, July.

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    More about this item

    Keywords

    Rent sharing; Private vs public ownership; Panel data; J45; D21; C23;
    All these keywords.

    JEL classification:

    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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