IDEAS home Printed from
   My bibliography  Save this article

The Employment Implication of Divestiture: The Indian Experience


  • Simrit Kaur


This paper attempts to explore the employment implications of disinvestment of State Owned Enterprises (SOEs) in India. Contrary to popular belief that disinvestment would severely undermine employment growth in central SOEs, the present analysis suggests that such fears are largely exaggerated, if not mistaken. There has been a uniform decline in growth rate of employment among all SOEs during the post reform period viz 1991–2000. As a result, the share of employment in disinvested SOEs and non-divested SOEs to total SOEs has remained constant. Another important conclusion is that the decline in absolute employment during this period was more a result of changes in the macro policy regime (e.g. a more open economy) than of disinvestment per se. Specifically, competition was more closely linked to employment than ownership, implying a more significant role of factors other than disinvestment. The apprehension that disinvestment may result in layoffs/retrenchment on a large scale is thus unwarranted.

Suggested Citation

  • Simrit Kaur, 2002. "The Employment Implication of Divestiture: The Indian Experience," Vision, , vol. 6(1), pages 59-72, January.
  • Handle: RePEc:sae:vision:v:6:y:2002:i:1:p:59-72

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Simrit Kaur, 2004. "Privatization And Public Enterprise Reform: A Suggestive Action Plan," ASARC Working Papers 2004-08, The Australian National University, Australia South Asia Research Centre.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:vision:v:6:y:2002:i:1:p:59-72. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.