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
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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
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