Countries the world over have launched ambitious privatization programs to improve the efficiency of state enterprises, free up resources for social services, and mobilize capital for expansion and modernization. A universal concern in this process is the effect privatization has on labor. Many observers fear that privatization will cause major job losses as new owners of privatized firms shed excess labor to improve efficiency and as divesting governments cut the workforce to prepare for privatization.
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Paper provided by World Bank - Technical Papers in its series Papers with number
396.
Find related papers by JEL classification: L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Boundaries of Public and Private Enterprise; Privatization; Contracting Out J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General