The Effects of Privatization on Labor in Turkey

Aysıt Tansel ()

No 103, ERC Working Papers from ERC - Economic Research Center, Middle East Technical University

Abstract: The effect of privatization on labor has been one of the least addressed issues. This paper evaluates the impact of privatization on dismissed workers in Turkey. Earnings equations at state employment and after dismissal are estimated and compared to evaluate the changes in worker's welfare. Dismissed workers experienced significant earnings losses upon reemployment. Earnings losses were smaller for the self-employed than for the wage employed. Post-dismissal jobs were not only characterized by lower earnings but also by a lower quality of non-monetary attributes. The magnitude of the true welfare losses is inferred from the subjective evaluations provided by the workers themselves. Workers felt that what they had lost had not been fully compensated by the severance pay they received.

Keywords: Privatization; Labor Retrenchment; Compensation; Turkey (search for similar items in EconPapers)
JEL-codes: J33 J45 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2001-03, Revised 2001-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:met:wpaper:0103

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