how does disinvestment affect the employment ?

Hi

As per your request The employee strength in central public sector enterprises (CPSEs) in India has been

plummeting since the late 80s. this era overlaps with the inception and evolution of disinvestment since

1991 as a remedial policy tool to enhance the performance of the CPSEs.

Disinvestment is defined because the transfer of ownership of public sector enterprises (PSEs) from the

govt to the private sector. Against this background, the present study aims to explore the effect of

disinvestment on the dimensions of employment in CPSEs. Using an instrumental variable approach, the

study focuses on the utilization decisions of all CPSEs (approximately 230) from 1991–1992 to 2011–

2012. The study recognizes and accounts for the political influence publicly sector enterprises and

disinvestment decisions.

The results suggest that disinvestment has, in fact, had a positive influence on employee strength.

Further, ideology of the state where the enterprise is found not only affects employment directly but

also conditions the influence of disinvestment on employee size.

Hello aspirant

The employee strength in central public sector enterprises ( CPSEs) in India has been plummering since the late 80s . This period overlaps with the inception and evolution of disinvestment since 1991 as a remedial policy tool to improve the performance of the CPSEs . Disinvestment is defined as the transfer of ownership of public sector enterprises from the government to the private sector. The current study aims to explore the effect of disinvestment on the size of employment in CPSE.

Ideology of the state where the Enterprise is located not affects employment directly but also conditions the influence of disinvestment on employee size.