Wages, Layoffs, and Privatization: Evidence from Ukraine

J. David Brown, John Earle and Volodymyr Vakhitov ()

No 601, CERT Discussion Papers from Centre for Economic Reform and Transformation, Heriot Watt University

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 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.

Keywords: privatization; layoffs; wages; Ukraine (search for similar items in EconPapers)
JEL-codes: D21 G34 J23 J31 L33 P23 P31 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-lab and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Journal Article: Wages, layoffs, and privatization: Evidence from Ukraine (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:hwe:certdp:0601

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