State Commercial Bank Pay Structure and Industry Metrics in Response to Bank Branching Deregulation
Abstract/Contents
- Abstract
- What was the state-level impact of bank branching deregulation on metrics such as profits, bank size, bank efficiency, and bank employee compensation? Did the timing of deregulation influence its effects? In this essay, I will use the American state-by-state deregulation of bank branching restrictions that occurred between the 1970s and 1990s to analyze the effects of branching regulations on the banking industry within each state. I will use a difference-in-difference analysis of metrics including asset size, profits, income, and indicators of industry efficiency. I test my results with additional controls including state per capita GDP, if the state was a unit banking state, and others. I examine branching deregulation’s effect on workers in the industry by race, gender, and state-level banking structure, as well as the effects of a state deregulating early vs. late. I confirm that branching deregulation lowered wages of workers in commercial banking and that wages of men fell further than those of women, but I counterintuitively find that the wages of Hispanics declined by more than those of whites. I also find that bank-level metrics like asset size rise overall, but that these changes are concentrated in non-unit banking states rather than unit banking states that experienced the greatest regulatory shifts over the time period analyzed. I also construct several measures of industry efficiency and find that, by those measures, deregulation did not make the banking industry more efficient.
Description
| Type of resource | text |
|---|---|
| Date created | May 2017 |
Creators/Contributors
| Author | Granato, Andrew |
|---|---|
| Primary advisor | Haber, Stephen |
| Degree granting institution | Stanford University, Department of Economics |
Subjects
| Subject | finance |
|---|---|
| Subject | bank branching deregulation |
| Subject | pay structure |
| Subject | bank size |
| Subject | bank efficiency |
| Subject | bank compensation |
| Subject | Stanford Department of Economics |
| Genre | Thesis |
Bibliographic information
Access conditions
- Use and reproduction
- User agrees that, where applicable, content will not be used to identify or to otherwise infringe the privacy or confidentiality rights of individuals. Content distributed via the Stanford Digital Repository may be subject to additional license and use restrictions applied by the depositor.
Preferred citation
- Preferred Citation
- Granato, Andrew. (2017). State Commercial Bank Pay Structure and Industry Metrics in Response to Bank Branching Deregulation. Stanford Digital Repository. Available at: https://purl.stanford.edu/sv450fg6709
Collection
Stanford University, Department of Economics, Honors Theses
View other items in this collection in SearchWorksContact information
- Contact
- econ@stanford.edu
Also listed in
Loading usage metrics...