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Foreign Participation and Hiring Patterns after Privatization
Author(s) -
Chong Alberto,
Galdo Virgilio
Publication year - 2009
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/j.1467-9914.2008.00447.x
Subject(s) - business , globalization , labour economics , foreign ownership , test (biology) , state (computer science) , state owned , market economy , economics , foreign direct investment , macroeconomics , paleontology , algorithm , biology , computer science
Critics of globalization claim that foreign ownership of privatized firms is linked to negative post‐privatization labor outcomes, such as more firing and less hiring. This paper uses new firm‐level data for a cross‐section of countries to test this idea and provides evidence that foreign purchasers of state‐owned enterprises tend to acquire firms that were already better restructured before privatization. Additionally, this paper does not find evidence that foreign participation in privatized firms is linked to negative labor outcomes.