Series
Upjohn Institute Working Paper No. 06-126
**Published Version**
In Journal of Comparative Economics 34(2): 272-294
DOI
10.17848/wp06-126
Issue Date
February 2006
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 discernible relationship with gender, education, or experience.
Sponsorship
Financial support from National Council for East European and Eurasian Research (NCEEER) and Economic Research and Outreach Center (EROC) at the Kyiv School of Economics.
Subject Areas
LABOR MARKET ISSUES; Job security and unemployment dynamics; Dislocated workers; Wages, health insurance and other benefits; INTERNATIONAL ISSUES; International labor comparisons; Transition economies
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Citation
Brown, J. David, John S. Earle, and Volodymyr Vakhitov. 2006. "Wages, Layoffs, and Privatization: Evidence from Ukraine." Upjohn Institute Working Paper No. 06-126. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. https://doi.org/10.17848/wp06-126