Skip to main content
Article thumbnail
Location of Repository

Wages, Layoffs, and Privatization: Evidence from Ukraine

By J. David Brown, John S. Earle and Vladimir Vakhitov


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.privatization, layoffs, wages, Ukraine

OAI identifier:

Suggested articles


  1. (1996). A theory of privatization.
  2. (2005). An Overview of the Ukrainian Longitudinal Monitoring Survey (ULMS). Bologna and
  3. (2005). Does privatization hurt workers: evidence from comprehensive manufacturing firm data in four countries. Upjohn Institute Working Paper,
  4. (1996). Employee ownership in transition.
  5. (2002). Enterprise restructuring in transition: a quantitative survey.
  6. (1999). Explaining the increase in inequality during the transition.
  7. (2002). Five years after: the impact of mass privatization on wages in Russia,
  8. (2002). How late to pay? Understanding wage arrears in Russia.
  9. (2005). Is women’s human capital valued more by markets than planners?
  10. (1998). On privatization methods in Eastern Europe and their implications.
  11. (1998). Privatization and labor: what happens to workers when governments divest. World Bank
  12. (2002). Privatization revisited: the effects of foreign and domestic owners on corporate performance.
  13. (2005). Returns to schooling in Russia and Ukraine: a semiparametric approach to cross-country analysis.
  14. (2005). Returns to skills and the speed of reforms: evidence from Central and
  15. (1999). The benefits of privatization: evidence from Mexico.
  16. (1993). The privatization process in Russia, Ukraine, and the Baltic states. London,
  17. (2006). The productivity effects of privatization: longitudinal estimates from Hungary,
  18. (2003). The reallocation of workers and jobs in Russian industry: new evidence on measures and determinants.
  19. (2005). Wage determination under plan and early transition: Bulgarian evidence using matched employer-employee data.
  20. (1999). When does privatization work? The impact of private ownership on corporate performance in the transition economies.
  21. (2000). Women in transition: changes in gender wage differentials in Eastern Europe and the Former Soviet Union.

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.