Privatization and efficiency wages

Goerke, Laszlo

doi:10.1007/bf01234645

Cited by 8 publications

(8 citation statements)

References 18 publications

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“…Nevertheless, in terms of job security, at least when measured by the share of permanent full time workers, there was no deterioration in privatised firms once this proportion increased during the entire period of analysis. 8 The trend in banking workers's wage is also clear: both public and privatised firms' regardless of the ownership of the bank. Moreover, the union bargaining position in the this industry (historically the largest and most influential in the country) has been reinforced over the course of reforms, in contrast with other sectors in the UK and USA, which were exposed to similar market oriented policies (privatisation/deregulation).…”

Section: Privatisation and The Portuguese Banking Labour Marketmentioning

confidence: 99%

“…But if workers are willing to put in more effort after privatisation, then firms may settle for higher wages (see for instance, Goerke (1998), De Fraja (1993), Haskel and Szymansky 1 Some notable exceptions include Brainerd (2002), Haskel and Szymansky (1993), Ho et al (2002), La Porta and Silanes (1999), Monteiro (2002), Parker and Martin (1996) and Peoples and Talley (2001). Megginson and Netter (2001) survey the empirical literature on privatisation.…”

Section: Introductionmentioning

confidence: 99%

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Using propensity matching estimators to evaluate the impact of privatization on wages

Monteiro

2010

Applied Economics

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Whether the transfer of ownership rights to the private sector leads to a decline or increase in wage growth is theoretically ambiguous, given that the outcome depends on the uncertain interaction between firms and workers. Using propensity matching techniques, this article investigates the effects of privatization on wages in the Portuguese banking industry. The empirical results, obtained from Quadros de Pessoal for the period between 1989 and 1997, generally show a negative (positive) short-run (long-run) effect of privatization on relative wage growth for both men and women retained in the privatized firms. Moreover, the results show that the most educated and experienced (oldest) workers, as well as those in the high skill occupational categories, were more likely to experience a negative wage effect.

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Section: Privatisation and The Portuguese Banking Labour Marketmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Using propensity matching estimators to evaluate the impact of privatization on wages

Monteiro

2010

Applied Economics

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“…If the monitoring intensity s is given exogenously, an increase in á will reduce wages and raise employment(Goerke (1998)). …”

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confidence: 99%

On the Relationship Between Wages and Monitoring in Shirking Models

Goerke

2001

Metroeconomica

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In shirking models of ef®ciency wages a higher monitoring intensity is often argued to allow for a reduction in the wage. This paper shows that the relationship between wages and monitoring intensity can be positive within a single ®rm, especially if the monitoring intensity is determined optimally. Moreover, given alternative ®rm objectives, a positive relationship can also exist across ®rms. Thus, shirking models do not generate a unique association between wages and monitoring intensity and empirical evidence on their correlation can only provide information on the relevance of shirking models under restrictive assumptions.

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“…18 Full privatisation involves 203 …rms (around 21%) while full nationalisation includes 70 (below 8%). 19 Moreover, the number of …rms that changed from a public majority to a private majority (351) is almost three times the number of …rms that changed in the opposite direction (120).…”

Section: Descriptive Statisticsmentioning

confidence: 99%

Firm Ownership and Rent Sharing

2011

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In this paper we analyse -theoretically and empirically -how the degree of private versus public ownership of …rms a¤ects the degree of rent sharing between …rms and their workers. Using a particularly rich linked employer-employee dataset from Portugal, covering a large number of corporate ownership changes across a wide spectrum of economic sectors over more than 20 years, we …nd that rent sharing is signi…c-antly higher in …rms with a larger share of private ownership. Estimates from our most preferred empirical speci…cation suggest that an increase in the private ownership share of 10 percentage points increases (on average) the rent-sharing elasticity by 0.0002. Based on a theoretical analysis that incorporates union-…rm wage bargaining and e¢ ciency wage e¤ects within the same modelling framework, this result cannot be explained by private …rms being more pro…t oriented than public ones. However, the result is consistent with a scenario whereby privatisation leads to less job security for workers, implying stronger e¢ ciency wage e¤ects.

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Privatization and efficiency wages

Abstract: efficiency wages, privatization, wage bargaining, L33, J41, J45, J51,

Cited by 8 publications

References 18 publications

Using propensity matching estimators to evaluate the impact of privatization on wages

Using propensity matching estimators to evaluate the impact of privatization on wages

On the Relationship Between Wages and Monitoring in Shirking Models

Firm Ownership and Rent Sharing

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