Labor Redundancy, Retraining, and Outplacement during Privatization: The Experience of Brazil's Federal Railway

Estache, Antonio

doi:10.1596/1813-9450-2460

Cited by 5 publications

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“…Often general training supporting labor market flexibility will be sufficient and more efficient in increasing productivity than specialized training. Data from Ireland confirms that general training raises productivity, but the same cannot be said about specialized training (Estache et al 2000).…”

Section: The Training Challengementioning

confidence: 94%

Job Creation through Infrastructure Investment in the Middle East and North Africa

et al. 2013

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Section: The Training Challengementioning

confidence: 94%

Job Creation through Infrastructure Investment in the Middle East and North Africa

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“…The training program for the displaced railway employees in Brazil also showed that when offered training options covering a wide range of skills, workers know exactly what they want and how to get trained to improve their chances of finding a job. In the railway project in Brazil, the majority of workers self-selected to participate in general training on how to run a business (Estache, Schmitt, and Sydenstricker 2000). Similar outcomes were illustrated by Loewenstein and Spletzer (1999) for U.S. workers.…”

Section: Types Of Training For Lasting Job Creationmentioning

confidence: 74%

“…Similar outcomes were illustrated by Loewenstein and Spletzer (1999) for U.S. workers. Data from Ireland confirm that general training raises productivity, but the same cannot be said about specialized training (Estache, Schmitt, and Sydenstricker 2000).…”

Section: Types Of Training For Lasting Job Creationmentioning

confidence: 95%

“…During the early 1990s, the World Bank conducted research on this topic, as summarized in Rama (2003). One World Bank project concerning railways in Brazil provided a unique experience in the creation and design of training programs, aimed at minimizing the time spent unemployed and maximizing the workers' chances of finding a job outside of infrastructure (Estache, Schmitt, and Sydenstricker 2000). The project included financing for training of workers who had lost their jobs as a result of privatization programs and also provided experience in building national capacity to run decentralized training centers, and in some instances, the outsourcing of training.…”

Section: Subsidized Employment Programs and Job Creationmentioning

confidence: 99%

“…This effect could be seen during the railway project in Brazil. Workers who took part in the project were offered two types of training, but most found a job without completing the more specialized training (Estache, Schmitt, and Sydenstricker 2000), suggesting that specific training has limited impact in practice.…”

Section: Types Of Training For Lasting Job Creationmentioning

confidence: 99%

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Infrastructure and Employment Creation in the Middle East and North Africa

Estache¹,

Ianchovichina²,

Bacon³

et al. 2013

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Some rights reserved 1 2 3 4 16 15 14 13 This work is a product of the staff of The World Bank with external contributions. Note that The World Bank does not necessarily own each component of the content included in the work. The World Bank therefore does not warrant that the use of the content contained in the work will not infringe on the rights of third parties. The risk of claims resulting from such infringement rests solely with you. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved.

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Downsizing with labor sharing and collusion

Estache¹,

Laffont

Zhang

2004

Journal of Development Economics

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In this paper we develop a model with adverse selection on the productive efficiency of workers in the private sector to analyze the downsizing problem in a public enterprise. Moreover, workers are distinguished by an inside productivity factor. Our result shows that reallocation of labor in the optimal downsizing mechanism depends on the comparative advantage of workers in public versus private production and on the size of asymmetric information. In particular, if information asymmetry is small, random downsizing mechanisms may become optimal. We also show that collusion between workers and the manager in charge of downsizing may induce more screening than in the absence of collusion if information asymmetry is large enough. Finally, we study how risk aversion of workers affects the optimal downsizing mechanism. JEL Classification: D82, L51, J2, O15.Keywords: Downsizing, Adverse Selection, Collusion, Risk Aversion. * We thank Zhi Jiang and Zhaocheng Wang for helpful discussions about the labor redundancy problem and the downsizing policies in the Chinese Railways. Valuable comments by the referees of JDE are acknowledged.

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Labor Redundancy, Retraining, and Outplacement during Privatization: The Experience of Brazil's Federal Railway

Cited by 5 publications

References 0 publications

Job Creation through Infrastructure Investment in the Middle East and North Africa

Job Creation through Infrastructure Investment in the Middle East and North Africa

Infrastructure and Employment Creation in the Middle East and North Africa

Downsizing with labor sharing and collusion

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