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The Employment Effects of Privatizing Public Utilities in OECD Countries

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  • Carina Schmitt

Abstract

This article examines whether the privatization of network-based utilities in developed countries leads to a retrenchment of the workforce. The panel regressions reveal, first, privatization does indeed lead to a reduction in the number of employees in the sectors concerned. Second, it is not typically the new investors themselves who implement the reduction. The downsizing takes place while the state is still the unique shareholder. Third, even though left-wing parties also implement privatization or at least not hamper, the results show that the displacement of workers is lower when left-wing parties dominate the cabinet.

Suggested Citation

  • Carina Schmitt, 2014. "The Employment Effects of Privatizing Public Utilities in OECD Countries," Public Management Review, Taylor & Francis Journals, vol. 16(8), pages 1164-1183, November.
    • Handle: RePEc:taf:rpxmxx:v:16:y:2014:i:8:p:1164-1183
    DOI: 10.1080/14719037.2013.792379
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    Cited by:

    1. Niklas Potrafke, 2019. "Does Public Sector Outsourcing Decrease Public Employment? Empirical Evidence from OECD Countries," CESifo Economic Studies, CESifo Group, vol. 65(4), pages 464-484.
    2. Lähdemäki, Sakari, 2024. "Privatization in competitive environment: Evidence from Finland's manufacturing sector," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 402-421.
    3. Silvana Secinaro & Luigi Corvo & Valerio Brescia & Daniel Iannaci, 2019. "Hybrid Organizations: A Systematic Review of the Current Literature," International Business Research, Canadian Center of Science and Education, vol. 12(11), pages 1-21, November.
    4. Eitan, Avri, 2023. "How are public utilities responding to electricity market restructuring and the energy transition? Lessons from Israel," Utilities Policy, Elsevier, vol. 82(C).

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