Wages, layoffs, and privatization: evidence from Ukraine

TitleWages, layoffs, and privatization: evidence from Ukraine
Publication TypeReport
AuthorsBrown, J. D., J. S. Earle, and V. Vakhitov
Date Published2006//
InstitutionW.E. Upjohn Institute for Employment Research Staff Working Papers: 06-126

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.

Publisher linkhttp://www.upjohninstitute.org/publications/wp/06-126.pdf
Department of Economics and Business