Does the public sector overpay or underpay workers relative to what they could earn in the private sector? Usual comparisons focus on similar jobs, but in a Developing country it is more sensible to focus on similar workers, as shown by the case of Vietnam

To predict the number of workers who will lose their jobs if state-owned enterprises are privatized or restructured, several approaches have been taken: drawing on international experience, accepting estimates from current directors of state enterprises, and inferring the number of redundancies...

Labor market policies and institutions affect the success of economic reform but probably more for political than for economic reasons. Growth appears not to be hurt by minimum wages and mandatory benefits. But the relative size of organized labor (in government and elsewhere) is crucial