Chinese privatization has been largely spontaneous. This paper studies its causes and outcomes in efficiency improvement and its implications for employment using firm-level paneldata collected in 11 citiesduringthepe...Chinese privatization has been largely spontaneous. This paper studies its causes and outcomes in efficiency improvement and its implications for employment using firm-level paneldata collected in 11 citiesduringtheperiod 1995-2001. Wefind thathardened budget constraint and marketliberalization aretwo significantfactorscontributing to privatization, whileworkerredundancyand excessive debtshinderit. Privatization improvesfirm efficiency when the amountof private sharespasses a certain threshold. In addition, privatized SOEs maintain a lower rate of employment reduction and a highergrowth rate in average wage paymentcompared to pureSOEs. However, theyalso fire more workers than pureSOEsin the year of privatization.<Keywords>privatization transition economics firmefficiency展开更多
文摘Chinese privatization has been largely spontaneous. This paper studies its causes and outcomes in efficiency improvement and its implications for employment using firm-level paneldata collected in 11 citiesduringtheperiod 1995-2001. Wefind thathardened budget constraint and marketliberalization aretwo significantfactorscontributing to privatization, whileworkerredundancyand excessive debtshinderit. Privatization improvesfirm efficiency when the amountof private sharespasses a certain threshold. In addition, privatized SOEs maintain a lower rate of employment reduction and a highergrowth rate in average wage paymentcompared to pureSOEs. However, theyalso fire more workers than pureSOEsin the year of privatization.<Keywords>privatization transition economics firmefficiency
