We analyze the dynamics public and private sector employment, using the natural experiment provided by the partial privatization of the Bangladeshi jute industry. Although the public sector had substantial excess employment of workers initially, this excess was substantially eroded by the end of...

We analyze the dynamics of public and private sector employment, using the natural experiment provided by the partial privatization of the Bangladeshi jute industry. A differences-in-differences approach allows us to infer ownership effects. Although the public sector had substantial excess...