The Division of Spoils: Rent-Sharing and Discrimination in a Regulated Industry

S-Tier
Journal: American Economic Review
Year: 2001
Volume: 91
Issue: 4
Pages: 814-831

Authors (2)

Sandra E. Black (Columbia University) Philip E. Strahan (not in RePEc)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Until the middle of the 1970s, 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.

Technical Details

RePEc Handle
repec:aea:aecrev:v:91:y:2001:i:4:p:814-831
Journal Field
General
Author Count
2
Added to Database
2026-01-24