Wages, Layoffs, and Privatization: Evidence from Ukraine

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

No 06-126, Staff Working Papers from W.E. Upjohn Institute for Employment Research

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. 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.

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)
New Economics Papers: this item is included in nep-fin, nep-lab and nep-tra
Date: 2006-02
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Related works:
Working Paper: Wages, Layoffs, and Privatization: Evidence from Ukraine (2006)
Journal Article: Wages, layoffs, and privatization: Evidence from Ukraine (2006)
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