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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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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0297.2009.02300.x
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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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Find related papers by JEL classification:

• D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
• G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
• J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
• J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
• L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
• P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

References

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Cited by:

1. Paulo Bastos & Natália Pimenta Monteiro & Odd Rune Straume, 2012. "Privatization and corporate restructuring," NIPE Working Papers 10/2012, NIPE - Universidade do Minho.
2. 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, Hungarian Academy of Sciences.
3. 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.
   
   • Gao, Hang & Marchand, Joseph & Song, Tao, 2011. "The Supply and Demand Factors Behind the Relative Earnings Increases in Urban China at the Turn of the 21st Century," Working Papers 2011-23, University of Alberta, Department of Economics, revised 01 Feb 2012.
4. Adelaide Figueiredo & Fernanda Figueiredo & Natália P. Monteiro & Odd Rune Straume, 2010. "Restructuring in privatised firms:a Statis approach," NIPE Working Papers 16/2010, NIPE - Universidade do Minho.
   
   • 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.
   • Adelaide Figueiredo & Fernanda Figueiredo & Natália P. Monteiro & Odd Rune Straume, 2011. "Restructuring in privatised firms: a Statis approach," FEP Working Papers 404, Universidade do Porto, Faculdade de Economia do Porto.
5. Miklos Koren & Marton Csillag, 2011. "Machines and machinists: Capital-Skill Complementarity from an International Trade Perspective," IEHAS Discussion Papers 1114, Institute of Economics, Hungarian Academy of Sciences.
   
   • Csillag, Márton & Koren, Miklós, 2011. "Machines and machinists: Capital-skill complementarity from an international trade perspective," CEPR Discussion Papers 8317, C.E.P.R. Discussion Papers.
   • 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.
6. Stepan Jurajda & Juraj Stancik, 2009. "Foreign Ownership and Corporate Performance: The Czech Republic at EU Entry," CERGE-EI Working Papers wp389, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
   
   • Štìpán Jurajda & Juraj Stanèík, 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.

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