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Foreign Participation and Hiring Patterns after Privatization

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  • Alberto Chong
  • Virgilio Galdo

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. Copyright 2009 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd.

Suggested Citation

  • Alberto Chong & Virgilio Galdo, 2009. "Foreign Participation and Hiring Patterns after Privatization," LABOUR, CEIS, vol. 23(1), pages 195-207, March.
  • Handle: RePEc:bla:labour:v:23:y:2009:i:1:p:195-207
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    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9914.2008.00447.x
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    1. Myrdal, Gunnar, 1989. "The Equality Issue in World Development," American Economic Review, American Economic Association, vol. 79(6), pages 8-17, December.
    2. Haltiwanger, John & Singh, Manisha, 1999. "Cross-Country Evidence on Public Sector Retrenchment," World Bank Economic Review, World Bank Group, vol. 13(1), pages 23-66, January.
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