The Division of Spoils: Rent-Sharing and Discrimination in a Regulated Industry
Abstract
Until the middle of the 1970's, regulations constrained banks' ability to enter new markets. Over the subsequent 25 years, states gradually lifted these restrictions. This paper tests whether rents fostered by regulation were shared with labor, and whether firms were discriminating by sharing these rents disproportionately with male workers. We find that average compensation and average wages for banking employees fell after states deregulated. Male wages fell by about 12 percent after deregulation, whereas women's wages fell by only 3 percent, suggesting that rents were shared mainly with men. Women's share of employment in managerial positions also increased following deregulation. (JEL G2, J3, J7, L5)
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Bertrand, M., & Mullainathan, S. (1999) · The RAND Journal of Economics · doi:10.2307/2556062 · Cited by 221 · see citing works
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Big bad banks? The winners and losers from bank deregulation in the United States
BECK, T., LEVINE, R., & LEVKOV, A. (2010) · The Journal of Finance · doi:10.1111/j.1540-6261.2010.01589.x · Cited by 3,358 · see citing works
Performance in competitive environments: gender differences
Gneezy, U., Niederle, M., & Rustichini, A. (2003) · The Quarterly Journal of Economics · doi:10.1162/00335530360698496 · Cited by 1,997 · see citing works
A multidisciplinary survey on discrimination analysis
Romei, A., & Ruggieri, S. (2014) · The Knowledge Engineering Review · doi:10.1017/s0269888913000039 · Cited by 288 · see citing works
Gender differences in competition
Niederle, M., & Vesterlund, L. (2008) · Negotiation Journal · doi:10.1111/j.1571-9979.2008.00197.x · Cited by 120 · see citing works
Finance, Growth, and Inequality
Levine, R. (2021) · IMF Working Papers · doi:10.5089/9781513583365.001 · Cited by 62 · see citing works
- Authors
- Black, S. E., & Strahan, P. E.
- Affiliations
- University of California, Los Angeles (US)
- Boston College (US)
- ORCID
- Strahan, Philip E
- Venue
- American Economic Review
- Publisher
- American Economic Association
- Published
- 2001-09-01
- Volume
- 91
- Issue
- 4
- Pages
- 814-831
- ISSN
- 0002-8282 (ISSN-L)
- OpenAlex
- W2038088414
- Cited by
- 434
- References
- 1
- Citations by year
- 2026: 11 · 2025: 8 · 2024: 17 · 2023: 20 · 2022: 19 · 2021: 19 · 2020: 20 · 2019: 22 · 2018: 13 · 2017: 20 · 2016: 26 · 2015: 22 · 2014: 24 · 2013: 27 · 2012: 23
- FWCI
- 20.86
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- American Economic Review (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
- Social Sciences › Economics, Econometrics and Finance › Finance › Banking stability, regulation, efficiency
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Historical Economic and Social Studies
- Keywords
- banking deregulation, rent sharing, wage discrimination, gender pay gap, state banking regulation, managerial employment, bank compensation, market entry restrictions
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