Wages, layoffs, and privatization: Evidence from Ukraine

Arbeitspapier

This paper estimates the effects of privatization on worker separations and wages using retrospective data from a national probability sample of Ukrainian households. Detailed worker characteristics are used to control for compositional differences and to assess types of observable 'winners' and 'losers' from privatization. Preprivatization worker-firm matches are used to control for unobservables in worker and firm selection. The results imply that privatization reduces wages by 5 percent and cuts the layoff probability in half. Outside investor ownership reduces separations but leaves wages unaffected. Winners from privatization tend to be higher-skilled employees of larger firms, but there is no discernable relationship with gender, education, or experience.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Upjohn Institute Working Paper ; No. 06-126

Classification and Topics

• Classification: Wirtschaft ; Firm Behavior: Theory ; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance ; Labor Demand ; Wage Level and Structure; Wage Differentials ; Comparison of Public and Private Enterprises and Nonprofit Institutions; Privatization; Contracting Out ; Socialist Systems and Transitional Economies: Factor and Product Markets; Industry Studies; Population ; Socialist Enterprises and Their Transitions
• Subject: privatization ; layoffs ; wages ; Ukraine ; Privatisierung ; Kündigung ; Lohn ; Ukraine

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Brown, J. David ; Earle, John S. ; Vakhitov, Vladimir
• Event: Veröffentlichung
• (who): W.E. Upjohn Institute for Employment Research
• (where): Kalamazoo, MI
• (when): 2006

Further information

• DOI: doi:10.17848/wp06-126
• Handle: http://hdl.handle.net/10419/64320
• Last update: 10.03.2025, 11:41 AM CET