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Employment and Wage Effects of Privatisation: Evidence from Hungary, Romania, Russia and Ukraine

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  • J. DavidBrown
  • JohnS. Earle
  • �lmos Telegdy

Abstract

We use longitudinal methods and universal panel data on 30,000 initially state-owned manufacturing firms in four transition economies to estimate the impact of privatisation on employment and wages. The results consistently reject job losses and never imply large wage cuts from either domestic or foreign privatisation. The domestic privatisation estimates are close to zero for employment; for wages, they are negative but small in magnitude. Estimated foreign privatisation effects are nearly always positive and sometimes large for both outcome variables. We interpret the employment and wage results in terms of underlying scale, productivity and cost effects of privatisation. Copyright � The Author(s). Journal compilation � Royal Economic Society 2009.

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Bibliographic Info

Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 120 (2010)
Issue (Month): 545 (06)
Pages: 683-708

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Handle: RePEc:ecj:econjl:v:120:y:2010:i:545:p:683-708

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Citations

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Cited by:
  1. John Sutherland Earle & Almos Telegdy, 2011. "Who Creates Jobs in Hungary? The Role of Entering, Exiting and Continuing Firms Before and During the Crisis," Budapest Working Papers on the Labour Market 1108, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  2. Márton Csillag & Miklós Koren, 2011. "Machines and machinists: Capital-skill complementarity from an international trade perspective," CeFiG Working Papers 13, Center for Firms in the Global Economy, revised 25 Mar 2011.
  3. Stepan Jurajda & Juraj Stancik, 2012. "Foreign Ownership and Corporate Performance: The Czech Republic at EU Entry," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 62(4), pages 306-324, August.
  4. Paulo Bastos & Natália Pimenta Monteiro & Odd Rune Straume, 2012. "Privatization and corporate restructuring," NIPE Working Papers 10/2012, NIPE - Universidade do Minho.
  5. Hang Gao & Joseph Marchand & Tao Song, 2013. "The Supply and Demand Factors Behind the Relative Earnings Increases in Urban China at the Turn of the 21st Century," Comparative Economic Studies, Palgrave Macmillan, vol. 55(1), pages 121-143, March.
  6. John Sutherland Earle & Almos Telegdy, 2011. "Medium-Term Industrial Labor Demand Forecast for Hungary," Budapest Working Papers on the Labour Market 1111, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  7. Figueiredo, Adelaide & Figueiredo, Fernanda & Monteiro, Natália P. & Straume, Odd Rune, 2012. "Restructuring in privatised firms: A Statis approach," Structural Change and Economic Dynamics, Elsevier, vol. 23(1), pages 108-116.
  8. Békés, Gábor & Muraközy, Balázs, 2012. "Magyar gazellák. A gyors növekedésű vállalatok jellemzői és kialakulásuk elemzése
    [Hungarian gazelles: what makes a high-growth firm in Hungary?]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 233-262.

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