Impact of privatization on employment and earnings

Earle, John S.

doi:10.15185/izawol.93

Cited by 3 publications

(2 citation statements)

References 15 publications

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“…Nonetheless, the above-mentioned works do not consider the issue of strategic optimal privatisation. On the other hand, Brown et al (2010) and Earle and Shpak (2019) test empirically the eff ect of privatisation on wage and employment levels in transition economies and show that they are almost never at lower levels after domestic privatisation and generally higher in the case of foreign privatisation.…”

Section: Literature Reviewmentioning

confidence: 99%

Optimal Share of Privatisation in a Public Monopoly with Unionised Workers

Fanti¹,

Buccella²

2021

Politicka ekonomie

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In a monopoly industry with firm-union wage bargaining, we show that it is optimal to privatise a share of the public firm. The optimal privatisation share increases with the union's higher bargaining power and/or wage-orientation and, when the latter is large, full privatisation becomes socially optimal. Interestingly, the optimal privatisation share is the highest (lowest) when the government attributes a medium-low (low and high) weight to the workers' welfare, notably when the union's bargaining power and/or wageorientation are sufficiently high. This may be counterintuitive because it implies that leftwing governments (with a weak and moderate union) tend to privatise more greatly.

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Section: Literature Reviewmentioning

confidence: 99%

Optimal Share of Privatisation in a Public Monopoly with Unionised Workers

Fanti¹,

Buccella²

2021

Politicka ekonomie

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“…According to Behar and Mok (2013, 24), "a public job typically comes at the cost of a private-sector job and therefore does not reduce overall unemployment." In several cases, privatization of SOEs has been shown to lead to overall increases in employment, even if there are layoffs in the former SOEs themselves (Davis et al 2000;Earle and Shpak 2019;Estache and Trujillo 2008). For example, a study of the Zambian air transport sector reveals that the emergence of two new private airlines following the collapse of the state-owned provider led to higher overall employment in the sector (Kikeri 1998).…”

Section: > > S T a T E -O W N E D E N T E R P R I S E S > > > D I R E C T E F F E C T Smentioning

confidence: 99%

Industrial Policy Effects and the Case for Competition

Pop¹,

Connon²

2020

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Revisiting Privatization and Economic Growth in Malaysia: An Empirical Examination

et al. 2018

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The rapid expansion of the public sector’s investment in the early 1970s and 1980s in Malaysia had resulted in a bloated bureaucracy, inefficiency, high costs and low productivity. The emergence of privatization policy in Malaysia aimed to reduce the financial burden of government, increase the level of efficiency and productivity, increase firm’s revenue, improve the country’s fiscal position and encourage foreign direct investment. Nevertheless, some privatization initiatives are controversial. This paper reexamines the relationship between privatization and economic growth in Malaysia. Two sets of annual macroeconomic data from 1984 to 1990 and 2009 to 2015 were used. Descriptive and frequency analysis was used to test the hypothesized relationship between privatization program and its impact on the nation’s macroeconomic benefits namely GDP growth, job creation as well as FDI inflows. By looking at the economic data sets, this paper found that the influence of privatization in Malaysia on economic growth, job creation and foreign direct investment inflow varies.

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Impact of privatization on employment and earnings

Cited by 3 publications

References 15 publications

Optimal Share of Privatisation in a Public Monopoly with Unionised Workers

Optimal Share of Privatisation in a Public Monopoly with Unionised Workers

Industrial Policy Effects and the Case for Competition

Revisiting Privatization and Economic Growth in Malaysia: An Empirical Examination

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