The Socioeconomic Consequences of Privatization: An Empirical Analysis for Europe

This study analyzes the impact of privatization on economic growth, productivity, income inequality and unemployment in 22 European countries between 2004 and 2013. The empirical findings suggest that privatization has a positive contemporaneous impact on economic growth, but the effects on labor productivity, income distribution, and unemployment appear two years after the privatization reforms. More concretely, privatization reforms may be implemented with increases in productivity and decreases in unemployment, but to the detriment of income equality.