Publication: Downsizing and Productivity Gains in the Public and Private Sectors of Colombia
Date
2002-01
ISSN
Published
2002-01
Author(s)
Rama, Martín
Newman, Constance
Abstract
Public sector restructuring, including
labor downsizing, has been one of the main areas of policy
activism in developing countries, and transition economies.
But little is known about its actual effects. The authors
use panel data on Colombian enterprises spanning more than
one decade, to assess the impact on several productivity
indicators. The results suggest that the productivity gains
from downsizing, are larger in state-owned enterprises than
in private enterprises. While the increase in value added
per worker is similar in both cases, state-owned enterprises
experience an increase in total value added, and in value
added per unit of capital, whereas both indicators decline
in private enterprises. The difference, which could simply
reflect the larger extent of initial inefficiency in
state-owned enterprises, does not appear to depend on the
degree of competition in product markets.
Link to Data Set
Citation
“Rama, Martín; Newman, Constance. 2002. Downsizing and Productivity Gains in the Public and Private Sectors of Colombia. Policy Research Working Paper;No. 2770. © World Bank, Washington, DC. http://hdl.handle.net/10986/15755 License: CC BY 3.0 IGO.”
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