Employment Effects of Privatisation and Foreign Acquisition of Chinese State-Owned Enterprises

IZA Discussion Paper No. 2453

University of Nottingham Research Paper No. 2006/32

30 Pages Posted: 7 Nov 2006

See all articles by Yundan Gong

Yundan Gong

Nottingham University Business School

Holger Görg

University of Kiel; Kiel Institute for the World Economy

Sara Maioli

Newcastle University Business School

Date Written: November 2006

Abstract

This paper investigates the effects of domestic privatisation or foreign acquisition of Chinese State Owned Enterprises (SOEs) on employment growth, using firm level data for China and a combination of propensity score matching and difference-in-differences in order to identify the causal effect. Our results suggest that, controlling for output growth there is some evidence that domestic privatisation leads to contemporaneous reductions in employment growth compared to firms that did not undergo an ownership change. By contrast, there is some evidence that foreign acquisitions show higher employment growth in the post acquisition period than non-acquired SOEs.

Keywords: Privatisation, Employment growth, State-owned enterprises, China

JEL Classification: F23, L33

Suggested Citation

Gong, Yundan and Gorg, Holger and Maioli, Sara, Employment Effects of Privatisation and Foreign Acquisition of Chinese State-Owned Enterprises (November 2006). IZA Discussion Paper No. 2453; University of Nottingham Research Paper No. 2006/32. Available at SSRN: https://ssrn.com/abstract=942736

Yundan Gong (Contact Author)

Nottingham University Business School ( email )

Jubilee Campus
Wollaton Road
Nottingham NG8 1BB
United Kingdom

Holger Gorg

University of Kiel ( email )

Olshausenstr. 40
D-24118 Kiel, Schleswig-Holstein 24118
Germany

Kiel Institute for the World Economy ( email )

P.O. Box 4309
Kiel, Schleswig-Hosltein D-24100
Germany

Sara Maioli

Newcastle University Business School ( email )

5, Barrack road
Newcastle upon Tyne, NE1 4SE
United Kingdom
+44 (0) 191 2081665 (Phone)

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