impact on public debt and the impact on other macroeconomic variables (unemployment and growth). The main results are the … have a statistically significant and negative effect on the current unemployment rate and a positive effect on the previous … period's unemployment rate. Intuitively this can be explained by noting that when privatization is announced the accompanied …

generates a negative effect on wages and an increase in the unemployment rate--and skilled workers, who benefit from higher … wages and lower unemployment. These changes in the labor market affect the government's revenue, resulting, in the long term …