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Privatization and Labour. What Happens to Workers When Governments Divest?

Author

Listed:
  • Kikeri, S.

Abstract

Countries the world over have launched ambitious privatization programs to improve the efficiency of state enterprises, free up resources for social services, and mobilize capital for expansion and modernization. A universal concern in this process is the effect privatization has on labor. Many observers fear that privatization will cause major job losses as new owners of privatized firms shed excess labor to improve efficiency and as divesting governments cut the workforce to prepare for privatization.

Suggested Citation

  • Kikeri, S., 1998. "Privatization and Labour. What Happens to Workers When Governments Divest?," Papers 396, World Bank - Technical Papers.
    • Handle: RePEc:fth:wobate:396
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    Citations

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    Cited by:

    1. Jaimovich, Esteban & Rud, Juan Pablo, 2014. "Excessive public employment and rent-seeking traps," Journal of Development Economics, Elsevier, vol. 106(C), pages 144-155.
    2. Santos, José Eusébio & Andini, Corrado, 2024. "Net privatisation prices in Brazil," Emerging Markets Review, Elsevier, vol. 60(C).
    3. Brown, J. David & Earle, John S. & Vakhitov, Volodymyr, 2006. "Wages, layoffs, and privatization: Evidence from Ukraine," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 272-294, June.
    4. John S. Earle & Álmos Telegdy, 2007. "Ownership and Wages: Estimating Public-Private and Foreign-Domestic Differentials using LEED from Hungary, 1986-2003," NBER Working Papers 12997, National Bureau of Economic Research, Inc.
    5. Lakshmi Iyer & Xin Meng & Nancy Qian & Xiaoxue Zhao, 2013. "Economic Transition and Private-Sector Labor Demand: Evidence from Urban China," Harvard Business School Working Papers 14-047, Harvard Business School, revised Apr 2016.
    6. El-hadj Bah & Josef C. Brada, 2014. "Labor Markets in the Transition Economies: An Overview," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 11(1), pages 3-53, June.
    7. J. David Brown & John Earle & Almos Telegdy, 2005. "Does Privatization Hurt Workers? Lessons from Comprehensive Manufacturing Firm Panel Data in Hungary, Romania, Russia, and Ukraine," CERT Discussion Papers 0509, Centre for Economic Reform and Transformation, Heriot Watt University.
    8. Public-Private Infrastructure Advisory Facility, 2004. "Labor Issues in Infrastructure Reform : A Toolkit, Module 1," World Bank Publications - Books, The World Bank Group, number 15020.
    9. World Bank, 2003. "The Russian Labor Market : Moving from Crisis to Recovery," World Bank Publications - Books, The World Bank Group, number 15007.
    10. Asiedu, Kofi Fred & Folmer, Henk, 2007. "Does Privatization Improve Job Satisfaction? The Case of Ghana," World Development, Elsevier, vol. 35(10), pages 1779-1795, October.
    11. Iyer, Lakshmi & Meng, Xin & Qian, Nancy & Zhao, Xiaoxue, 2019. "Economic transition and private-sector labor: Evidence from urban China," Journal of Comparative Economics, Elsevier, vol. 47(3), pages 579-600.
    12. Grzegorz Kwiatkowski & Marlena Gołębiowska & Jakub Mroczek, 2023. "How much of the world economy is state‐owned? Analysis based on the 2005–20 Fortune Global 500 lists," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(2), pages 659-677, June.
    13. World Bank, 2005. "Azerbaijan : Enterprise Restructuring and Labor Redeployment, Volume 1, Main Report," World Bank Publications - Reports 8751, The World Bank Group.
    14. John S. Earle & Álmos Telegdy, 2008. "Ownership and Wages: Estimating Public-Private and Foreign-Domestic Differentials with LEED from Hungary, 1986 to 2003," NBER Chapters, in: The Analysis of Firms and Employees: Quantitative and Qualitative Approaches, pages 229-252, National Bureau of Economic Research, Inc.
    15. World Bank, 2006. "Approaches to Private Participation in Water Services : A Toolkit," World Bank Publications - Books, The World Bank Group, number 6982.
    16. Operations Evaluation Department, 2005. "Evaluating a Decade of World Bank Gender Policy : 1990-99," World Bank Publications - Books, The World Bank Group, number 7375.
    17. Simrit Kaur, 2002. "The Employment Implication of Divestiture: The Indian Experience," Vision, , vol. 6(1), pages 59-72, January.
    18. Tsamenyi, Mathew & Onumah, Joseph & Tetteh-Kumah, Edmund, 2010. "Post-privatization performance and organizational changes: Case studies from Ghana," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 21(5), pages 428-442.
    19. Clive Harris, 2003. "Private Participation in Infrastructure in Developing Countries : Trends, Impacts, and Policy Lessons," World Bank Publications - Books, The World Bank Group, number 15124.

    More about this item

    Keywords

    PRIVATIZATION ; LABOUR ; WORKERS;
    All these keywords.

    JEL classification:

    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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