The behaviour of state firms in eastern Europe, pre-privatization: A generalisation

This paper extends the model of enterprise restructuring in transitional economies developed by Aghion, Blanchard and Burgess in a way that generalises and clarifies the problem worker opposition to it. Restructuring that causes an initial reduction in jobs followed by a possible subsequent increase...

Full description

Saved in:
Bibliographic Details
Published in:European economic review 1996-02, Vol.40 (2), p.491-494
Main Author: Kenway, Peter
Format: Article
Language:English
Subjects:
Corporate reorganization
Eastern Europe
Economic behaviour
Economic models
Economic theory
Employee attitude
Industrial restructuring
Job satisfaction
Occupational psychology
Organizational behavior
Privatization
Public sector
State-owned enterprises
Studies
Transition
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This paper extends the model of enterprise restructuring in transitional economies developed by Aghion, Blanchard and Burgess in a way that generalises and clarifies the problem worker opposition to it. Restructuring that causes an initial reduction in jobs followed by a possible subsequent increase may be resisted by workers, even where it is socially optimal. This ‘undue’ resistance arises not because workers do not value the new jobs that may be created, but rather because they do not value them sufficiently. Worker resistance is thereby shown to depend on the general level of unemployment, with implications for the pace of restructuring.
ISSN:0014-2921
1873-572X
DOI:10.1016/0014-2921(95)00047-X