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Does Privatization Hurt Workers? Lessons from Comprehensive Manufacturing Firm Panel Data in Hungary, Romania, Russia and Ukraine Author info | Abstract | Publisher info | Download info | Related research | Statistics J. David Brown
John S. Earle
Álmos Telegdy () (Institute of Economics, Hungarian Academy of Sciences)
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registered author(s):
We analyze the effects of privatization on firm-level wages and employment in four transition economies. Contrary to workers' fears, our fixed effect and random trend estimates imply little effect of domestic privatization, except for a slight negative effect in Russia, and they provide some evidence of positive foreign effects on both wages and employment in all four countries. The negligible employment impact of domestic privatization results from effects on efficiency and scale that are large, positive, but offsetting in Hungary and Romania, and from small effects of both types in Russia and Ukraine. The positive employment and wage bill consequences of foreign ownership result from a substantial scale-expansion effect that dominates the efficiency effect.
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Paper provided by Institute of Economics, Hungarian Academy of Sciences in its series Budapest Working Papers on the Labour Market with number
0510.
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Date of creation: 12 Jan 2006Date of revision:
12 Jan 2006Publication status: Published in Journal of Political Economy, vol. 114, no. 1.Handle: RePEc:has:bworkp:0510Contact details of provider: Postal: 1112 Budapest, Budaorsi ut 45. Phone: (36-1) 319-3119 Fax: (36-1) 319-3136 Web page: http://econ.core.hu More information through EDIRC
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Keywords: privatization employment wages foreign ownership Hungary Romania Russia Ukraine Other versions of this item:
Paper J. David Brown & John Earle & Almos Telegdy, 2005.
"Does Privatization Hurt Workers? Lessons from Comprehensive Manufacturing Firm Panel Data in Hungary, Romania, Russia, and Ukraine ,"
CERT Discussion Papers
0509, Centre for Economic Reform and Transformation, Heriot Watt University.
[Downloadable!] J. David Brown & John S. Earle & Almos Telegdy, 2005.
"Does Privatization Hurt Workers? Lessons from Comprehensive Manufacturing Firm Panel Data in Hungary, Romania, Russia, and Ukraine ,"
Staff Working Papers
05-125, W.E. Upjohn Institute for Employment Research.
[Downloadable!] (restricted) Find related papers by JEL classification: D21 - Microeconomics - - Production and Organizations - - - Firm Behavior 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 - - - Boundaries of Public and Private Enterprise; Privatization; Contracting Out P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
This paper has been announced in the following NEP Reports :
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Other versions: J. David Brown & John S. Earle & Almos Telegdy, 2006.
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Journal of Political Economy ,
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Other versions:
J. David Brown & John Earle & Almos Telegdy, 2005.
"The Productivity Effects of Privatization: Longitudinal Estimates from Hungary, Romania, Russia, and Ukraine ,"
CERT Discussion Papers
0508, Centre for Economic Reform and Transformation, Heriot Watt University.
[Downloadable!] J. David Brown & John S. Earle & Almos Telegdy, 2005.
"The Productivity Effects of Privatization: Longitudinal Estimates from Hungary, Romania, Russia, and Ukraine ,"
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The Quarterly Journal of Economics ,
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"Winners and Losers: Assessing the Distributional Impact of Privatization ,"
World Development ,
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Csengödi, Sándor / Urban, Dieter M., 2008.
"Foreign Takeovers and Wage Dispersion in Hungary ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo GmbH.
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John S. Earle & Álmos Telegdy, 2007.
"Ownership and Wages: Estimating Public-Private and Foreign-Domestic Differentials Using LEED from Hungary, 1986-2003 ,"
IZA Discussion Papers
3125, Institute for the Study of Labor (IZA).
[Downloadable!]
Other versions:
John S. Earle & Ãlmos Telegdy, 2007.
"Ownership and Wages: Estimating Public-Private and Foreign-Domestic Differentials using LEED from Hungary, 1986-2003 ,"
NBER Working Papers
12997, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) John S. Earle & Almos Telegdy, 2007.
"Ownership and Wages: Estimating Public-Private and Foreign-Domestic Differentials using LEED from Hungary, 1986-2003 ,"
CERT Discussion Papers
0711, Centre for Economic Reform and Transformation, Heriot Watt University.
[Downloadable!] John S. Earle & Almos Telegdy, 2007.
"Ownership and Wages: Estimating Public-Private and Foreign-Domestic Differentials with LEED from Hungary, 1986–2003 ,"
Staff Working Papers
07-134, W.E. Upjohn Institute for Employment Research.
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Robert E. Lipsey, 2006.
"Measuring the Impacts of FDI in Central and Eastern Europe ,"
NBER Working Papers
12808, National Bureau of Economic Research, Inc.
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