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Workers Displaced Due to Privatization in Turkey:Before Versus After Displacement

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  • Aysit Tansel

    ()
    (Department of Economics, Middle East Technical University)

Abstract

This study, on the impact of privatization on dismissed workers in Turkey, is the first of its kind. It is based on interviews with dismissed workers in the cement and petrochemicals sectors. Severed workers suffered significant earning losses upon re-employment. These losses amounted to an average of 61 per cent for the cement and 57 percent for the Petkim workers. Earning losses were smaller for the more experienced and better educated but were higher for those with higher earnings in state employment; earning losses were not significantly influenced by the tenure in state employment. Welfare losses were higher than those indicated by the earning losses, since the post-dismissal jobs not only paid lower monetary remunerations but were also of lower quality than the state jobs. The nonmonetary aspects of losses are anticipated by two questions which required workers' subjective evaluations of their pre-and post-dismissal welfare. The overwhelming majority of workers considered their current welfare worse than it was during state employment and would have preferred to go back if they could. These results suggest that the attractive monetary and nonmonetary conditions of state employment were unattainable in the private sector.

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Bibliographic Info

Paper provided by Economic Research Forum in its series Working Papers with number 9719.

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Date of creation: Dec 1997
Date of revision: Dec 1997
Publication status: Published by The Economic Research Forum (ERF)
Handle: RePEc:erg:wpaper:9719

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Cited by:
  1. Aysit Tansel, 2001. "The Effects of Privatization on Labor in Turkey," ERC Working Papers 0103, ERC - Economic Research Center, Middle East Technical University, revised Mar 2001.
  2. Daniele Calabrese, 2008. "Strategic Communication for Privatization, Public-Private Partnerships, and Private Participation in Infrastructure Projects," World Bank Publications, The World Bank, number 6522, October.

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