Cookies?
Library Header Image
LSE Research Online LSE Library Services

The public sector and the misallocation of labor: evidence from a policy experiment in India

Baird, Matthew, Chari, A.V., Nataraj, Shanthi, Rothenberg, Alexander, Telhaj, Shqiponja and Winters, L. Alan (2019) The public sector and the misallocation of labor: evidence from a policy experiment in India. CEP Discussion Papers (1596). Centre for Economic Performance, LSE, London, UK.

[img] Text (dp1596) - Published Version
Download (373kB)

Abstract

State-owned enterprises are often thought to represent a distortion in the labor market, but the implied efficiency losses have not been carefully estimated. This paper presents the first rigorous quantification of the aggregate productivity effects of privatization of public sector enterprises. We study historical episodes of privatization of public sector firms in India over the period 1991-2005, and find evidence of reallocation of labor away from the public sector following privatization. In turn, this reallocation appears to result in a substantial improvement in aggregate productivity and output.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk/_new/publications/series.asp?...
Additional Information: © 2019 The Authors
Divisions: Spatial Economics Research Centre
LSE
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HC Economic History and Conditions
JEL classification: J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J20 - General
Date Deposited: 22 Nov 2019 15:24
Last Modified: 08 Dec 2019 01:03
URI: http://eprints.lse.ac.uk/id/eprint/102605

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics