Whether the transfer of ownership rights to the private sector leads to a decline (increase) on wage growth is theoretically ambiguous given that the outcome depends on the uncertain interaction between firms ’ and workers ’ behaviour. Using propensity matching techniques, this paper investigates the effects of privatisation on wages in the Portuguese banking industry. The empirical results obtained from Quadros de Pessoal for the period between 1989 and 1997, clearly confirm a U-shaped relationship between wage variation and timing of economic restructuring for either men or women retained in the firm. Moreover, the results show that privatisation hit more intensely the most educated, experienced (oldest) and the best paid workforce irrespective of the gender.