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Labor adjustments in privatized firms: a Statis approach

Author

Listed:
  • Adelaide Maria Figueiredo

    (LIAAD/INESC-Porto and Faculdade de Economia, Universidade do Porto)

  • Fernanda Otília Figueiredo

    (CEAUL and Faculdade de Economia, Universidade do Porto)

  • Natália Pimenta Monteiro

    (NIPE and Departamento de Economia, Universidade do Minho)

Abstract

This paper examines labor adjustments in ten Portuguese banks after the ownership transfer to the private sector. The results show that the restructuring process is a very complex phenomenon, with firms exhibiting diverse adjustments in terms of either speed or path. In addition, our findings also show that the pay level in the banking industry is by far the workforce attribute that changed more, reflecting substantial changes in terms of composition and not size of the workforce. In particular, firms tend to reduce the share of workers in managerial occupations and replace the most experienced employees with younger and more educated workers. Our empirical evidence also suggests that privatization is associated with a higher level of rent sharing.

Suggested Citation

  • Adelaide Maria Figueiredo & Fernanda Otília Figueiredo & Natália Pimenta Monteiro, 2008. "Labor adjustments in privatized firms: a Statis approach," FEP Working Papers 306, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:306
    as

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    File URL: http://www.fep.up.pt/investigacao/workingpapers/08.12.19_wp306.pdf
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    References listed on IDEAS

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    1. G. Madonia & M. Cracolici & M. Cuffaro, 2013. "Exploring Wider Well-Being in the EU-15 Countries: An Empirical Application of the Stiglitz Report," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 111(1), pages 117-140, March.

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    More about this item

    Keywords

    Labor adjustments; Portuguese banking industry; privatization; Statis;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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