Firm Ownership and Rent Sharing

Natália Monteiro, Miguel Portela () and Odd Rune Straume

No 4909, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: rent sharing; private vs public ownership; panel data (search for similar items in EconPapers)
JEL-codes: C23 D21 J45 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2010-04
New Economics Papers: this item is included in nep-bec, nep-lab and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - published in: Journal of Labor Research, 2011, 32 (3), 210 - 236

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Journal Article: Firm Ownership and Rent Sharing (2011)
Working Paper: Firm ownership and rent sharing (2010)
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