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Privatization and the Decline of Labour's Share

International Evidence from Network Industries

Bibliographic Data

ID9723970
AuthorsGhazala Azmat (0000-0001-9450-6958, Universitat Pompeu Fabra and Barcelona GSE), Alan Manning (0000-0002-7884-3580, London School of Economics and Centre for Economic Performance), John Van Reenen (0000-0001-9153-2907, London School of Economics and Centre for Economic Performance, NBER and CEPR)
Year2012
Volume79
Issue315
Pages470-492
Publication date2012-07-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherWiley (PUBLISHER • GB)
DOI10.1111/j.1468-0335.2011.00906.x
OpenAlexW2120377240
LanguageEN
Citations received26
References cited28

Some authors have suggested that deregulation of product and labour markets is responsible for the decline in Labour's share of GDP. A simple model predicts that privatization is associated with a lower labour share, due to job shedding. We test this hypothesis by focusing on privatization of network industries in the OECD. We find that, on average, privatization accounts for a fifth of the fall of Labour's share, and over half in Britain and France. This is due to lower employment, but it is partially offset by higher wages and falling barriers to entry, which dampen profit margins

Deregulation · Economics · Efficiency wage · Falling (accident) · Labour economics · Market economy · Profit (economics) · Profit margin · Wage · Wage share · Corporate Finance and Governance · Economic Policies and Impacts · European Monetary and Fiscal Policies

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Unique citing works26
Citations per year2
Citation span2013 - 2026 (14)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 25
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