Wages, layoffs, and privatization: Evidence from Ukraine

J. David Brown, John S. Earle, Volodymyr Vakhitov

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    17 Citations (Scopus)

    Abstract

    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. Pre-privatization worker-firm matches are used to control for unobservables in worker and firm selection. The results imply privatization reduces wages by five 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 discernible relationship with gender, education, or experience. Journal of Comparative Economics 34 (2) (2006) 272-294. © 2006 Association for Comparative Economic Studies.

    Original languageEnglish
    Pages (from-to)272-294
    Number of pages23
    JournalJournal of Comparative Economics
    Volume34
    Issue number2
    DOIs
    Publication statusPublished - Jun 2006

    Keywords

    • Layoffs
    • Privatization
    • Ukraine
    • Wages

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