State-owned firms were said to have an excessive use of labour. The cost of job losses after privatization was debated but ignored due to perceived efficiency gains in the utilization of labour. We estimate longer time employment risk, labour use adjustment and the efficiency of labour utilization in the Pakistani cement industry. We conclude that firms have made significant adjustments in labour use and employment risks have indeed reduced. Our estimates however, show that long run labour use efficiency in the industry and in the privatized firms has not improved, but that, surprisingly, firms set-up and operated privately have experienced a decrease in labour efficiency.
|Number of pages||20|
|Journal||Annals of Public and Cooperative Economics|
|Early online date||9 Mar 2017|
|Publication status||Early online - 9 Mar 2017|
- labour use efficiency
- wage elasticity
- employment risk