Public Employee Compensation and the Efficacy of Privatization Alternatives in US State and Local Governments

This article investigates the evidence used in the debate over public‐sector collective bargaining and privatization as US states attempted to resolve their budget problems. Specifically, the article evaluates the research on whether US state and local government workers are overpaid and whether privatization provides a cost‐effective alternative to the provision of public services by public employees. All recent studies find that state and local public employees earn on average lower wages than comparable private‐sector workers and on average receive better health benefits and pensions than private‐sector employees. Most studies find that the better benefits offset lower wages on average, and there is no state and local public employee compensation premium. The research on privatization in the USA indicates that it has reached something of an equilibrium with approximately one‐quarter of municipal public services being provided by private organizations. The major costs of privatization include overhead costs of competitive bidding, monitoring, oversight, and evaluation, which if done properly can often offset any privatization cost advantage, while if privatization is done without adequate controls, it can result in corruption, poor quality services, and then demands for reverse privatization.     

Long-term sustainability of third-party facilitated market linkages: Evidence from the USDA marketing assistance program in the Armenian dairy industry

Public–private partnerships are increasingly seen as an important tool to build agri-food supply chains and develop markets for agri-food products in emerging economies. However, many of these initiatives fail when the public component of the program ends. One exception is the USDA Market Assistance Program (MAP) that facilitated the redevelopment of the Armenian dairy sector after privatization. This paper presents a case study of this initiative and hypothesize that the USDA MAP facilitated farmer investment in private enforcement capital. This investment resulted in sustainable market relationships between farmers and dairy processors even after the USDA MAP expired. We find empirical evidence to support this hypothesis using a panel dataset collected from 172 Armenian dairy farmers in 2004 and 2009.     

Raising the Standard? The Regulation of Employment,and Public Sector Employment Policy

This article describes developments in employment regulation in 2005 and assesses how far these measures fulfilled the Government’s pledges to the union movement made in the Warwick Agreement. It also examines the Government’s behaviour as an employer, and the interplay between public and private sector employment practice. It concludes that there was limited evidence of Government commitment to the traditional conception of the good employer. There was also little sign of the public sector being used to promote a coherent model of employment practice to private sector employers in 2005. Direct regulation of the employment relationship was more in evidence.     

Economic growth,telecommunications development and productivity growth of the telecommunications sector: Evidence around the world

This paper studies the relationships between economic growth, telecommunications development and productivity growth of the telecommunications sector in different countries and regions of the world. In particular, this study assesses the impact of mobile telecommunications on economic growth and telecommunications productivity. The results indicate that there is a bidirectional relationship between real gross domestic product (GDP) and telecommunications development (as measured by teledensity) for European and high-income countries. However, when the impact of mobile telecommunications development on economic growth is measured separately, the bi-directional relationship is no longer restricted to European and high-income countries. This study also finds that countries in the upper-middle income group have achieved a higher average total factor productivity (TFP) growth than other countries. Countries with competition and privatization in telecommunications have achieved a higher TFP growth than those without competition and privatization. The diffusion of mobile telecommunications services is found to be a significant factor that has improved the TFP growth of the telecommunications sector in Central and Eastern Europe (CEE).     

Competitive dynamics in Polish telecommunications, 1990–2000: growth,regulation, and privatization of an infrastructural multi-network

This paper analyzes the relationship between governmental regulatory policies and competitive dynamics amongst private operators and the national monopolist, TP SA, in three network segments of the Polish telecommunications sector. Special attention is paid to the evolution of organizational strategies in a regulatory environment characterized by constant strategic indecision and reorientations of national policy makers. The paper finds that regulatory/competition coevolution has taken diverse forms in the three network subsegments, with asymmetric duopoly operating in the local fixed network, hidden competition at work in the long-distance fixed network, and oligopolistic technology-driven competition characterizing the high-growth cellular network. The conclusion reached is that Polish telecommunications to date has been stuck in a broad stage of pre-competitive market maneuverings by domestic and international capital, in preparation for privatization of the national operator and for full liberalization as part of EU integration.     

Can the public sector meet the challenge of private research? Commentary on “Falcon and Fowler” and “Pingali and Traxler”

The growth of private sector participation in agricultural research has serious implications for pro-poor technology development, but there are other factors that must be considered. New plant varieties are not the only things standing between resource-poor farmers and secure livelihoods, and institutional strengthening is also necessary. In addition, the current state of public agricultural research is cause for concern. It is not clear how many effective public–private partnerships can be formed; the public sector needs a much clearer definition of its targets and priorities; and funding strategies for national and international agricultural research must be overhauled.     

论恢复土地农民所有制

土地的农民所有制是我国1949年至1956年实行的一种农村土地制度，是一种新型的土地私有制，实行效果颇佳且受农民欢迎。实行农地私有化是由社会分工和农业生产的特点决定的，与社会制度、社会形态和意识形态没有必然联系，与公有制以及社会主义制度也是能够相容的。从农地私有化的产生条件，农业生产的特点，新中国土地制度变革史，中国现有土地制度的缺陷以及党的十七届三中全会精神等方面分析说明，在中国推行农地私有化是可行的。应在国家的控制下，积极稳妥地推动农地私有化，恢复土地的农民所有制，还地权于农民，实现土地的农民所有，以解决“三农问题”和推动我国的工业化、城市化。     

Objectives and incentives: Evidence from the privatization of Great Britain’s power plants

Does privatization increase plant productivity because the private owner’s objective is different, or because they are better able to control management? And, is privatization sufficient to improve productivity, or is it only effective in combination with competition? We answer these questions using the quasi-experiment of Great Britain’s electricity industry privatization. To separate the effect of a change in objectives from a change in incentives we assume, that the former only affects labor but not fuel productivity. And, assuming that effective competition was only introduced after privatization, we are able to separately identify the effects of privatization and competition. We find that privatization increased labor but not fuel productivity: evidence for the importance of objectives. There is no evidence that the introduction of effective competition after privatization increased labor or fuel productivity: evidence that privatization increases productivity by itself.     

Interstate vs. Interprovincial Differences in Union Density

Union density in Canada is approximately twice that in the United States. The range of densities from high to low states/provinces is much smaller, however: 2:1 in Canada vs. 6:1 in the U.S. After adjusting for differences in industry distribution of employment, this study finds that the major source of interstate and interprovincial differences is private sector density. Most of the low union density states have right-to-work laws, while the greater the comprehensiveness of state bargaining laws, the higher the public sector density. In Canada, where all public and private sector employees have the right to bargain, there is a higher average level of public and private sector densities and a smaller range for both. The more supportive labor legislation in Canada may be associated with the existence of labor-oriented political parties at the provincial level.     

Comparative Organizational Characteristics of Indian State-Owned Enterprises

This article evaluates the organizational characteristics, defined as returns to scale and most productive scale size, for a sample of 67 Indian state-owned enterprises in comparison with 63 private and 27 foreign-owned enterprises. State-owned units suffer from decreasing returns to scale with diseconomies being associated with their large size. The average most productive scale size of the state-owned firms is considerably smaller than average actual size, establishing the need for a break-up of existing units into many smaller units so as to gain efficiencies. A policy of restructuring these organizations before privatization will enable privatization to be eventually more successful.     

Industry and firm effects of privatization in Malawian oligopolistic manufacturing

This study evaluates the impact of privatization on technical efficiency using panel data from privatized enterprises, state-owned enterprises and private enterprises competing in oligopolistic Malawian manufacturing industries in which privatization took place. The results of the technical efficiency model, based on the period 1970–1997, provide evidence that privatization increases the technical efficiency of all firms (industry effects). Further incentives for improvements in technical efficiency are due to more domestic competition, multinationality and structural adjustment.     

The Greek Public Sector Wage Premium before the Crisis: Size,Selection and Relative Valuation of Characteristics

We examine the Greek public–private wage differential before the debt crisis to evaluate the prospective impact of the recent public sector pay cuts. We find a large public premium which persists after controlling for individual and job characteristics. For men, much of this is accounted for by self‐selection into the sector that rewards better their characteristics, while for women it is largely driven by sectoral differences in returns. We attribute these effects to more egalitarian pay structures in the public sector and to demand problems in the private sector. The recent policy measures only partially change this situation, as wage deflation extends to the private sector, preserving public premia for the low paid.     

Industrial Relations in the Privatized Mining Industry

This article examines the impact of privatization on industrial relations in the UK coal industry. It focuses on aspects of continuity and change in the transition to privatization, assessing how far the processes of trade union exclusion and decollectivization, begun by British Coal, have been extended or modified in the first year of private operation. The paper argues that the segmentation of trade union interests has been exacerbated in a variety of ways, not least by the fragmentation of the industry under different forms of ownership and control. It concludes that, while the likelihood of industrial action in the smaller companies is remote, RJB Mining is more vulnerable to sanctions than was its predecessor. However, it remains debatable to what extent future cost-cutting and closures might precipitate such action, given the extent of decollectivization that has occurred.     

Capital subsidies,profit maximization,and acquisitions by partially privatized telecommunications carriers

A recent phenomenon in competition policy is the acquisition of a private firm by an enterprise that is either wholly owned by government or in the midst of privatization. Such an acquisition poses the question of how public ownership may alter the incentives of a firm to engage in anticompetitive conduct. It also prompts one to examine the process by which such altered incentives revert, as the level of government ownership declines, to the same incentives that face purely private firms. Using Deutsche Telekom's acquisition of VoiceStream Wireless as a case study, this article presents the economic questions relevant to evaluating the competitive consequences of acquisitions by partially privatized firms. It predicts gains or losses to various constituencies of producer groups. It then analyzes bond ratings and weighted-average costs of capital to determine whether such data are consistent with the hypothesis, advanced by parties opposed to such foreign investment, that partially privatized acquirers benefited from the government subsidization of their credit.     

Economy size and performance: An efficiency analysis in the telecommunications sector

The existing empirical evidence on the relationship between economy size and performance has been inconclusive. This paper employs stochastic frontier analysis to estimate economic measures of efficiency for the telecommunications sectors of 139 economies and examine their relationship with economy size. Simultaneously, it controls for the effects of competition in telecommunications, privatization of state-owned providers, independent regulators, and the quality of political institutions on sector performance. The findings suggest that economy size has a positive but decreasing impact on sector performance. Small economies have an incentive to grow to improve sector performance, though larger size is not a sufficient condition for efficiency. Sector policy and the quality of polity may contribute significantly to sector performance.     

The strategic management process at the public planning unit level

This paper describes a normative strategic management process for the public sector. It focuses on the state agency or department as the strategic public planning unit (SPPU). Each department within a state Government provides a distinctly different service to a more or less homogeneous segment of the state's citizenry. Therefore, for strategic management purposes, each state unit operates in its unique context and must meet the demands of varied constituency publics if it is to be a viable and effective provider of its service. The process herein described recognizes the unique aspects of public sector strategic management and integrates several stages that are specific to the public sector into an established private sector strategic management framework.     

Telecom reforms in the EU: Prices and consumers' satisfaction

The paper shows the impact of privatization and liberalization on consumers in the telecommunication sector for 15 EU countries. Policy reforms are summarized by the OECD regulatory indicators (REGREF) that consider the extent of privatization, vertical disintegration, and market entry. After controlling for other country variables, first, a test of the impact of ownership and regulatory changes on consumer prices is given. In the second step, the Eurobarometer data on consumers' satisfaction about quality and prices of the telecommunication service are considered. The analysis confirms the importance of market regulation in reducing prices but minimizes the role played by privatization per se. Overall, the findings offer only mixed evidence, and somehow contradict, the hypothesis that all the reforms work in a similar way across the EU countries.     

State Ownership, Privatization and Performance in Singapore: An Exploratory Study from a Strategic Management Perspective

This paper considers the ownership debate with regard to state-owned enterprises (SOEs) performance, that is, whether superior performance of SOEs can be achieved under state ownership. While the traditional belief has been, supported by empirical work, that private ownership is generally associated with superior performance, the experience of Singapore is a clear example to the contrary. We outline global privatization trends and discuss the impact of privatization programs. We then discuss Singapore Telecom as a case where state ownership combined with several contextual and firm-related factors, especially firm strategy, has led to sustained world-class performance. We develop a theoretical framework for this analysis based on the strategic management field. We lastly outline some theoretical and practical implications of the analysis.     

Public- and Private-Sector Occupational Pay Structures

Data from a representative sample of wage and salary workers are used to estimate wage equations that provide for direct estimates of the differences between public and private occupational pay structures. The results show that at the state and local levels of government in particular, the public/private wage differential tends to decline as occupational skill requirements increase. Public employees who work on jobs unique to the public sector are paid a wage premium. There is little support for the idea that degree of union coverage in the private sector affects public wages for an occupation.     

‘The Magnificent 7[am]?’ Work‐life articulation beyond the 9[am] to 5[pm] ‘norm’

This article focuses on the work‐life ‘balance’ challenges of those who work in organisations that operate beyond standard hours. The concept of work‐life articulation is utilised to examine the experiences and practicalities of attempting to reconcile the, often competing, demands of employment and family life. Qualitative research was conducted in two private sector businesses and one‐third sector organisation in the UK during the onset of the 2008 financial crisis. The findings reveal increasing competitive pressures, efficiency drives and work intensification. ‘Business needs’ are prioritised over care responsibilities, and in the private sector organisations there is declining flexible working with a reassertion of the management prerogative. This article contributes to current debates over work‐life ‘balance’ and highlights variable, changeable and unpredictable working time arrangements that permeate non‐standard hours, which creates additional complexities and challenges for family time schedules and routines.