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The Effects of Privatization on Labor in Turkey

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Author Info
Aysit Tansel () (Department of Economics, METU)

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Abstract

The effect of privatization on labor has been one of the least addressed issues. This paper evaluates the impact of privatization on dismissed workers in Turkey. Earnings equations at state employment and after dismissal are estimated and compared to evaluate the changes in worker's welfare. Dismissed workers experienced significant earnings losses upon reemployment. Earnings losses were smaller for the self-employed than for the wage employed. Post-dismissal jobs were not only characterized by lower earnings but also by a lower quality of non-monetary attributes. The magnitude of the true welfare losses is inferred from the subjective evaluations provided by the workers themselves. Workers felt that what they had lost had not been fully compensated by the severance pay they received.

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File URL: http://www.erc.metu.edu.tr/menu/series01/0103.pdf
File Format: application/pdf
File Function: First version, 2001
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Publisher Info
Paper provided by ERC - Economic Research Center, Middle East Technical University in its series ERC Working Papers with number 0103.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length: 19 pages
Date of creation: Mar 2001
Date of revision: Mar 2001
Handle: RePEc:met:wpaper:0103

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Web page: http://www.erc.metu.edu.tr
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Related research
Keywords: Privatization Labor Retrenchment Compensation Turkey

Find related papers by JEL classification:
J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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.:

  1. Tansel , A., 1997. "Workers Displaced Due to Privatization in Turkey," Papers 9719, Economic Research Forum.
  2. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-93, March. [Downloadable!] (restricted)
  3. Rosenthal, Leslie, 1990. "Time to Re-establishment of Equilibrium for a Group of Redundant Workers," Applied Economics, Taylor and Francis Journals, vol. 22(1), pages 83-95, January.
  4. Kletzer, Lori Gladstein, 1989. "Returns to Seniority after Permanent Job Loss," American Economic Review, American Economic Association, vol. 79(3), pages 536-43, June. [Downloadable!] (restricted)
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This page was last updated on 2008-7-28.

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