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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 Earle
Almos Telegdy
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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 Centre for Economic Reform and Transformation, Heriot Watt University in its series CERT Discussion Papers with number
0509.
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Date of creation: 2005Date of revision:
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Keywords: privatization ; employment ; wages ; foreign ownership ; Hungary ; Romania ; Russia ; Ukraine ; Other versions of this item:
Paper J. David Brown & John S. Earle & Álmos Telegdy, 2006.
"Does Privatization Hurt Workers? Lessons from Comprehensive Manufacturing Firm Panel Data in Hungary, Romania, Russia and Ukraine ,"
Budapest Working Papers on the Labour Market
0510, Institute of Economics, Hungarian Academy of Sciences, revised 12 Jan 2006.
[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 P3 - Economic Systems - - Socialist Institutions and Their Transitions
This paper has been announced in the following NEP Reports :
References listed on IDEAS 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.: Boycko, Maxim & Shleifer, Andrei & Vishny, Robert W, 1996.
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CERT Discussion Papers
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[Downloadable!]
Other versions:
J. David Brown & John S. Earle & Almos Telegdy, 2005.
"The Productivity Effects of Privatization: Longitudinal Estimates from Hungary, Romania, Russia, and Ukraine ,"
Staff Working Papers
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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.)
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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John S. Earle & Álmos 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.
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"Foreign Takeovers and Wage Dispersion in Hungary ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
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Robert E. Lipsey, 2006.
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