# Table 8. Labor Restructuring and Privatization Prices

||Dependentvar|iableisn|etprivati|zationpr|ice/sales||||
|---|---|---|---|---|---|---|---|---|
|Variables|||Two-Stepp|rocedure|||Two-Step p|rocedure|
||OLS|TOBIT|<br>OLS|<br>TOBIT|OLS|TOJIT|<br>OLS|<br>TO81T|
||(1)|(2)|(3)|(4)|(5)|(6)|(7)|(S)|
|**_1.-_**_Firmandprivalizationchatac_|_teristics:_||||||||
|Nettotalliabilities|-0.0903|-0.0918b|-0.2113|-0.2142|-0.0887|-0.0897|-0.1455|-0.145|
||(0.043)|(0.044)|(0.072)|(0.062)|(0.041)|(0.043)|(0.057)|(0.053)|
|Share Sold|-0.0040|-0.0037|-0.0021|-0.0028|-0.0039|-0.0036|-0.0036|-0.0033|
||(0,002)|(0.002)|(0.001)|(0.001)|(0.002)|(0.002)|(0.002)|(0.002)|
|Foreignparticipation|0.1502|0.1657|0.1229|0.1376|0.1439|0.1606'|0.1413'|0.1558|
||(0.032)|(0.028)|(0.030)|(0.028)|(0.032)|(0.028)|(0.031)|(0.029)|
|Public offering|0.0911|0.1339|0.0855|0.1315|0.0927|0.1364|0.0895|0.1339|
||(0.042)|(0.041)|(0.043)|(0.040)|(0.041)|(0.040)|(0.043)|(0.041)|
|DirectSale|-0.0007|0.0482|-0.0079|0.0441|-0.0018|0.0481|-0.0044|0.0463|
||(0.046)|(0.045)|(0.048)|(0.044)|(0.046)|(0.045)|(0.048)|(0.045)|
|**_2.-_**_LaborCharacteristics:_|||||||||
|Unions|-0.1484|-0.1250|-0.1536|-0.1314|-0.1487|-0.1242|-0.1641|-0.1413|
||(0.035)|(0.038)|(0.034)|(0.036)|(0.035)|(0.038)|(0.035)|(0.037)|
|Strikes|-0.0075|-0.0172|-0.0191|-0.0197|-0.0069|-0.0179|-0.0323|-0.0386|
||(0.028)|(0.026)|(0.043)|(0.044)|(0.027)|(0.026)|(0.038)|(0.040)|
|**_3.-_**_LaborPolicies:_|||||||||
|Downsizing|-0.0619|-0.0600|0.0284|0.0215|||||
||(0.030)|'(0.030)|(0.033)|(0.038)|||||
|Voluntarydownsizing|||||-0.0773|-0.0692|-0.0572|_-0.0561_|
||||||(0.028)|(0.027)|(0.027)|(0.029)|
|Employmentguarantee|-0.0927'|-0.0956'|-0.0862|-0.091|-0.1005|-0.1024*|-0.0996'|-0.103|
||(0.032)|(0.030)|(0.032)|(0.030)|(0.031)|(0.030)|(0.033)|(0.031)|
|Paycut|-0.0650|-0.0723|0.0803|0.0692|-0.0688|-0.0762|0.0306|0.0155|
||(0.045)|(0.044)|(0.091)|(0.104)|(0.044)|(0.044)|(0.093)|(0.110)|
|_4.-MacroeconomicVariables:_|||||||||
|GrossDomestic Product|0.0514|0.0533|0.0525'|0.0553'|0.0512'|0.0533|0.0447|0.0467|
||(0.009)|(0.008)|(0.009)|(0.009)|(0.009)|(0.008)|(0.010)|(0.009)|
|Inflation|0.0001|0.0001|0.0001|0.0001|0.0001|0.0001|0.0001|0.0001|
||(0.000)|(0.000)|(1.128)|(0.728)|(0.000)|(0.000)|(1.841)|(1.353)|
|Constant|-0.7242|-1.1126|-0.8489|-1.2934'|-0.7211|-1.1236|-0.6119|-1.0373|
||(0.310)|(0.238)|(0.332)|(0.283)|(0.299)|(0.237)|(0.330)|(0.270)|
|Observations|292|308|292|308|292|308|292|308|
|R-squared|0.53||0.546||0.536||0.528||
|F|21.99||24.59||23.39||22.97||
|Prob>F|0.000||0.000||0.000||0.000||
|PseudoR2||1.327||1.3471||1.338||1.3184|
|LR chi2||314.26||317.23||316.86||312.24|
|Prob>chi2||0.000||0.000||0.000||0.000|

_Note:_ The dependent variable is net privatization price/sales, defined as the amount that accrues to the government after all privatization and restructuring costs are taken into account, such as government commitments at the time of sale, and other adjustments are made to the sale contract. This number is adjusted by the percentage of company shares sold and is dividesd by the average net sales during the three years prior to privatization. The present value of the resulting number as of December 2000 is used. Columns (1), (2) (5) and (6) consider prior restructuring measures and the rest of variable as exogenous and provide estimates from OLS and TOBIT regressions. Column (3), (4), (7) and (8) show the second stage of the two-step procedure in order to account for endogeneity. All regressions include sectoral controls and **firm** size controls. Robust standard errors are given in parentheses. a significant at **I** percent; b significant at 5 percent; c significant at **10** percent.

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