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On Foreign Participation and Hiring Patterns After Privatization

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Author Info
Virgilio Galdo
Alberto Chong ()

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Abstract

Critics of globalization claim that foreign ownership of privatized firms is linked to negative post-privatization labor outcomes, such as more firing and less hiring. This paper uses new firm-level data for a cross section of countries to test this idea and provides evidence that foreign purchasers of state-owned enterprises tend to acquire firms that were already better restructured before privatization. Additionally, this paper does not find evidence that foreign participation in privatized firms is linked to negative labor outcomes.

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Paper provided by Inter-American Development Bank, Research Department in its series RES Working Papers with number 4441.

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Date of creation: Mar 2006
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Handle: RePEc:idb:wpaper:4441

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  1. Haltiwanger, John & Singh, Manisha, 1999. "Cross-Country Evidence on Public Sector Retrenchment," World Bank Economic Review, Oxford University Press, vol. 13(1), pages 23-66, January.
  2. Myrdal, Gunnar, 1989. "The Equality Issue in World Development," American Economic Review, American Economic Association, vol. 79(6), pages 8-17, December. [Downloadable!] (restricted)
  3. Bhaskar, V & Khan, Mushtaq, 1995. "Privatization and Employment: A Study of the Jute Industry in Bangladesh," American Economic Review, American Economic Association, vol. 85(1), pages 267-73, March. [Downloadable!] (restricted)
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