Azmat, Ghazala, Manning, Alan and Van Reenen, John (2011) Privatization and the decline of labour's share: international evidence from network industries. Economica, 79 (315). pp. 470-492. ISSN 0013-0427
Some authors have suggested that deregulation of product and labour markets is responsible for the decline in Labour's share of GDP. A simple model predicts that privatization is associated with a lower labour share, due to job shedding. We test this hypothesis by focusing on privatization of network industries in the OECD. We find that, on average, privatization accounts for a fifth of the fall of Labour's share, and over half in Britain and France. This is due to lower employment, but it is partially offset by higher wages and falling barriers to entry, which dampen profit margins. © 2012 The London School of Economics and Political Science.
|Additional Information:||© 2011 The London School of Economics and Political Science|
|Library of Congress subject classification:||H Social Sciences > HC Economic History and Conditions|
|Sets:||Departments > Economics
Research centres and groups > Centre for Economic Performance (CEP)
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