State Ownership and Labor Redundancy : Estimates Based on Enterprise-Level Data from Vietnam
Privatizing, or restructuring state-owned enterprises, may lead to massive layoffs, but the number of redundant workers is usually unknown beforehand. The authors estimate labor redundancy by comparing employment levels across enterprises with...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2001/05/1121280/state-ownership-labor-redundancy-estimates-based-enterprise-level-data-vietnam http://hdl.handle.net/10986/19659 |
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okr-10986-196592021-04-23T14:03:43Z State Ownership and Labor Redundancy : Estimates Based on Enterprise-Level Data from Vietnam Belser, Patrick Rama, Martin ACCOUNTING ASSETS AUDITS AUTONOMY CENTRAL PLANNING COAL COMPANY CONCEPTUAL FRAMEWORK CONGLOMERATES CORPORATION CORPORATIONS DEBT DECISION MAKING DOWNSIZING ECONOMIC GROWTH EMPIRICAL ANALYSIS EMPLOYMENT ENTERPRISE REFORM EQUILIBRIUM EXPANSION FIRMS HOUSING INFLATION INSURANCE JOB SECURITY JOBS JOINT VENTURES LABOR COSTS LABOR FORCE LABOR PRODUCTIVITY LABOR REDUNDANCY LARGE ENTERPRISES LAYOFF LAYOFFS LIQUIDATION LOCAL GOVERNMENTS MANUFACTURERS MARGINAL PRODUCT MARKET COMPETITION MEDIUM ENTERPRISES OIL PERSONNEL PRIVATE COMPANIES PRIVATE ENTERPRISES PRIVATIZATION PRODUCTIVITY PROFITABILITY REDUNDANT WORKERS REORGANIZATION RETIREMENT SHAREHOLDERS SOCIAL SAFETY NETS STATE ENTERPRISES SUBSIDIARY SUBSIDIARY ENTERPRISES TERMINATION TRADE UNIONS TRANSITION ECONOMIES Privatizing, or restructuring state-owned enterprises, may lead to massive layoffs, but the number of redundant workers is usually unknown beforehand. The authors estimate labor redundancy by comparing employment levels across enterprises with different degrees of state ownership. In their model, state enterprises are a hybrid between labor-managed enterprises, and profit-maximizing enterprises, with the profit motive becoming less prominent as the state of capital increases. This model leads to an employment equation, that is estimated using an enterprise database from Vietnam. In this database, constructed especially for this paper, roughly a third of the enterprises are fully state-owned, a third are fully private, and a third are joint ventures between the state, and the private sector. The employment equations control for sector activity, region, and the enterprise's age, among other variables. The results suggest that if the state share of capital were brought down to zero, roughly half of the workers in the corresponding enterprises would be redundant. This is more than ten times the estimate by the current enterprise directors. The results also show a wide dispersion of redundancy across sectors of activity. There is only a weak correlation between estimated labor redundancy, and twelve ad hoc indicators of profitability, productivity, and labor cost. But the correlation between most ad hoc indicators also is weak, suggesting that these indicators are not reliable tools for identifying the most overstaffed enterprises. 2014-08-26T14:44:18Z 2014-08-26T14:44:18Z 2001-05 http://documents.worldbank.org/curated/en/2001/05/1121280/state-ownership-labor-redundancy-estimates-based-enterprise-level-data-vietnam http://hdl.handle.net/10986/19659 English en_US Policy Research Working Paper;No. 2599 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Vietnam |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING ASSETS AUDITS AUTONOMY CENTRAL PLANNING COAL COMPANY CONCEPTUAL FRAMEWORK CONGLOMERATES CORPORATION CORPORATIONS DEBT DECISION MAKING DOWNSIZING ECONOMIC GROWTH EMPIRICAL ANALYSIS EMPLOYMENT ENTERPRISE REFORM EQUILIBRIUM EXPANSION FIRMS HOUSING INFLATION INSURANCE JOB SECURITY JOBS JOINT VENTURES LABOR COSTS LABOR FORCE LABOR PRODUCTIVITY LABOR REDUNDANCY LARGE ENTERPRISES LAYOFF LAYOFFS LIQUIDATION LOCAL GOVERNMENTS MANUFACTURERS MARGINAL PRODUCT MARKET COMPETITION MEDIUM ENTERPRISES OIL PERSONNEL PRIVATE COMPANIES PRIVATE ENTERPRISES PRIVATIZATION PRODUCTIVITY PROFITABILITY REDUNDANT WORKERS REORGANIZATION RETIREMENT SHAREHOLDERS SOCIAL SAFETY NETS STATE ENTERPRISES SUBSIDIARY SUBSIDIARY ENTERPRISES TERMINATION TRADE UNIONS TRANSITION ECONOMIES |
| spellingShingle |
ACCOUNTING ASSETS AUDITS AUTONOMY CENTRAL PLANNING COAL COMPANY CONCEPTUAL FRAMEWORK CONGLOMERATES CORPORATION CORPORATIONS DEBT DECISION MAKING DOWNSIZING ECONOMIC GROWTH EMPIRICAL ANALYSIS EMPLOYMENT ENTERPRISE REFORM EQUILIBRIUM EXPANSION FIRMS HOUSING INFLATION INSURANCE JOB SECURITY JOBS JOINT VENTURES LABOR COSTS LABOR FORCE LABOR PRODUCTIVITY LABOR REDUNDANCY LARGE ENTERPRISES LAYOFF LAYOFFS LIQUIDATION LOCAL GOVERNMENTS MANUFACTURERS MARGINAL PRODUCT MARKET COMPETITION MEDIUM ENTERPRISES OIL PERSONNEL PRIVATE COMPANIES PRIVATE ENTERPRISES PRIVATIZATION PRODUCTIVITY PROFITABILITY REDUNDANT WORKERS REORGANIZATION RETIREMENT SHAREHOLDERS SOCIAL SAFETY NETS STATE ENTERPRISES SUBSIDIARY SUBSIDIARY ENTERPRISES TERMINATION TRADE UNIONS TRANSITION ECONOMIES Belser, Patrick Rama, Martin State Ownership and Labor Redundancy : Estimates Based on Enterprise-Level Data from Vietnam |
| geographic_facet |
East Asia and Pacific Vietnam |
| relation |
Policy Research Working Paper;No. 2599 |
| description |
Privatizing, or restructuring
state-owned enterprises, may lead to massive layoffs, but
the number of redundant workers is usually unknown
beforehand. The authors estimate labor redundancy by
comparing employment levels across enterprises with
different degrees of state ownership. In their model, state
enterprises are a hybrid between labor-managed enterprises,
and profit-maximizing enterprises, with the profit motive
becoming less prominent as the state of capital increases.
This model leads to an employment equation, that is
estimated using an enterprise database from Vietnam. In this
database, constructed especially for this paper, roughly a
third of the enterprises are fully state-owned, a third are
fully private, and a third are joint ventures between the
state, and the private sector. The employment equations
control for sector activity, region, and the
enterprise's age, among other variables. The results
suggest that if the state share of capital were brought down
to zero, roughly half of the workers in the corresponding
enterprises would be redundant. This is more than ten times
the estimate by the current enterprise directors. The
results also show a wide dispersion of redundancy across
sectors of activity. There is only a weak correlation
between estimated labor redundancy, and twelve ad hoc
indicators of profitability, productivity, and labor cost.
But the correlation between most ad hoc indicators also is
weak, suggesting that these indicators are not reliable
tools for identifying the most overstaffed enterprises. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Belser, Patrick Rama, Martin |
| author_facet |
Belser, Patrick Rama, Martin |
| author_sort |
Belser, Patrick |
| title |
State Ownership and Labor Redundancy : Estimates Based on Enterprise-Level Data from Vietnam |
| title_short |
State Ownership and Labor Redundancy : Estimates Based on Enterprise-Level Data from Vietnam |
| title_full |
State Ownership and Labor Redundancy : Estimates Based on Enterprise-Level Data from Vietnam |
| title_fullStr |
State Ownership and Labor Redundancy : Estimates Based on Enterprise-Level Data from Vietnam |
| title_full_unstemmed |
State Ownership and Labor Redundancy : Estimates Based on Enterprise-Level Data from Vietnam |
| title_sort |
state ownership and labor redundancy : estimates based on enterprise-level data from vietnam |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2001/05/1121280/state-ownership-labor-redundancy-estimates-based-enterprise-level-data-vietnam http://hdl.handle.net/10986/19659 |
| _version_ |
1764440259924328448 |