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Privatization and corporate restructuring

Author

Listed:
  • Paulo Bastos

    (Inter-American Development Bank)

  • Natália Pimenta Monteiro

    (Universidade do Minho - NIPE)

  • Odd Rune Straume

    (Department of Economics, University of Minho)

Abstract

We examine corporate restructuring following privatization using uncommonly rich data on the population of Portuguese firms from 1991-2009. We find that privatization leads to sizable job losses, reflecting reductions in both the number of establishments and in the number of workers per establishment. We find no robust evidence of impacts on the structure of the workforce. The estimated job losses following privatization are consistent with a theory in which the shift in ownership increases the degree of profi t orientation and leads to lower job security.

Suggested Citation

  • Paulo Bastos & Natália Pimenta Monteiro & Odd Rune Straume, 2012. "Privatization and corporate restructuring," NIPE Working Papers 10/2012, NIPE - Universidade do Minho.
    • Handle: RePEc:nip:nipewp:10/2012
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    File URL: http://www3.eeg.uminho.pt/economia/nipe/docs/2012/NIPE_WP_10_2012.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Privatization; employment structure; panel data;
    All these keywords.

    JEL classification:

    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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