Privatization and Labor Cost Savings: Evidence from Health Care Services |
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| Authors: | James Peoples Bin Wang |
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| Institution: | (1) Department of Economics, University of Wisconsin – Milwaukee, Milwaukee, WI 53201, USA;(2) College of Business, Minot State University, Minot, ND 58707, USA |
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| Abstract: | This study examines whether privatization is associated with low public sector health care wages and with low probability
of public sector employment for health care providers. Findings suggest that privatization contributes significantly to low
wages of union health care providers in the public sector. Privatization also contributes to a low probability of public sector
employment in this industry, especially to unionized workers. These results indicate that competition enhancing policy can
promote lower labor costs even in a service sector that employs a highly skilled work force.
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| Keywords: | labor cost health care services service sector |
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