This paper studies the impact of privatization of state-owned enterprises (SOEs) on workers at privatized SOEs and the aggregate labor market. Following privatization, wages for incumbent workers in privatized SOEs fall by about 30 log points relative to a control group. Half of this decline is...

This paper exploits tenure-dependence in the design of employment protection legislation (EPL) to identify its equilibrium impacts. In our setting, Brazil, EPL applies after a three-month probationary period, incentivizing firms to terminate jobs at exactly 3 months. We develop a structural...