ERC Homepage ERC Homepage
ERC Lectures in Economics
ERC Working Papers
Executive Committee
About ERC
METU Home Page
Department of Economics


The Effects of Privatization on Labor in Turkey

Aysıt Tansel


The effect of privatization on labor has been one of the least addressed issues. This paper evaluates the impact of privatization on dismissed workers in Turkey. Earnings equations at state employment and after dismissal are estimated and compared to evaluate the changes in worker's welfare. Dismissed workers experienced significant earnings losses upon reemployment. Earnings losses were smaller for the self-employed than for the wage employed. Post-dismissal jobs were not only characterized by lower earnings but also by a lower quality of non-monetary attributes. The magnitude of the true welfare losses is inferred from the subjective evaluations provided by the workers themselves. Workers felt that what they had lost had not been fully compensated by the severance pay they received.

JEL Codes: J45, J33

Key Words: Privatization, Labor Retrenchment, Compensation, Turkey

Full Text (in Adobe Acrobat format)


2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996