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Rent Sharing and the Gender Bargaining Gap: Evidence from the Banking Sector

Author

Listed:
  • Coskun Dalgic, Sena

    (FAU Erlangen-Nuremberg, IAB, CEPR)

  • Gartner, Hermann

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Taskin, Ahmet Ali

    (Institute for Employment Research (IAB), Nuremberg, Germany)

Abstract

"We use the removal of public bank guarantees in Germany as a quasi-natural experiment to estimate the gender bargaining power gap. Using comprehensive wage data from the universe of banking employees, combined with bank-level financial information, we find that women have approximately two-thirds of the bargaining power of men. Our model-based analysis suggests that this gender bargaining gap alone accounts for 13 to 25 percent of the observed gender wage gap in the sector. These findings highlight an important driver of gender inequality: Changes in firm profitability can reduce the gender wage gap, even without improvements in structural gender equality. This effect has significant implications for high-rent, high-inequality industries such as finance, where rent-sharing mechanisms favor male employees." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Coskun Dalgic, Sena & Gartner, Hermann & Taskin, Ahmet Ali, 2025. "Rent Sharing and the Gender Bargaining Gap: Evidence from the Banking Sector," IAB-Discussion Paper 202506, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:202506
    DOI: 10.48720/IAB.DP.2506
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    Keywords

    IAB-Open-Access-Publikation;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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