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SPP 264

Title: CAUSES AND CONSEQUENCES OF PRIVATIZATION: BEHAVIOUR AND ATTITUDES OF RUSSIAN WORKERS
 
Author: John S Earle & Richard Rose
 
Description: This paper investigates the causes and consequences of ownership change among Russians interviewed in the nationwide April 1995 New Russia Barometer. We use information on individual workers to investigate several hypotheses concerning ownership reform in the Russian transition. Examining such types of firm behavior as the restructuring of product lines, investment in new equipment, compensation practices, internal organization and labor market behavior, we find significant differences between privatized and state-owned enterprises and between new private and all old organizations. Differences in the behavior of workers are significant when comparing new and old firms, but much less so when comparing privatized and state-owned enterprises. We address the possibility that observed differences are due to some form of selection bias, whereby firms and workers with particular characteristics are not randomly distributed, but instead tend to be concentrated in certain ownership groups. Comparing new private firms to older organizations, we find significant differences in nearly every dimension of firm and worker characteristics, suggesting some support for ; we find relatively few such differences between privatized firms and state-owned enterprises. Finally, we investigate the association of political and social attitudes and reported voting intentions with the ownership sector in which individuals work.

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