We thank two anonymous referees for very helpful comments and suggestions. We are also grateful to Ministério do Trabalho e da Solidariedade Social for allowing access to data from Quadros de Pessoal. Financial support was provided by the Portuguese Foundation for Science and Technology (under the grant PTDC/EGE-ECO/102914/2008) through the ‘Programa Operacional Temático Factores de Competitividade (COMPETE)’ of the ‘Quadro Comunitário de Apoio III’, which is partially funded by FEDER. The views expressed herein are solely those of the authors and not necessarily those of the World Bank.
The impact of private vs. public ownership on the level and structure of employment†
Article first published online: 22 JAN 2014
© 2014 The Authors Economics of Transition © 2014 The European Bank for Reconstruction and Development. Published by Blackwell Publishing Ltd
Economics of Transition
Volume 22, Issue 2, pages 247–280, April 2014
How to Cite
Bastos, P., Monteiro, N. P. and Straume, O. R. (2014), The impact of private vs. public ownership on the level and structure of employment. Economics of Transition, 22: 247–280. doi: 10.1111/ecot.12038
- Issue published online: 14 MAR 2014
- Article first published online: 22 JAN 2014
- Manuscript Accepted: 24 OCT 2013
- Manuscript Received: 17 OCT 2012
- Portuguese Foundation for Science and Technology. Grant Number: PTDC/EGE-ECO/102914/2008
- employment structure;
- panel data
We examine the effects of private vs. public ownership on the level and structure of employment using uncommonly rich data on the population of Portuguese firms from 1991 to 2009. We find that private ownership is associated with sizeable job losses. This occurs whether we consider privatizations or nationalizations, and the relationship tends to be stronger in the presence of foreign capital. We also find some evidence that private ownership is associated with higher skill utilization, particularly following privatizations and when foreign investment is present. The estimated job losses associated with private ownership are consistent with a theory in which the shift in ownership increases the degree of profit orientation and leads to lower job security.