The Impact of Privatization of Public Services on the Public Sector Employment in the U.S.

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The Impact of Privatization of Public Services on the Public Sector Employment in the U.S.

Literature review Privatization is one of the most discussed topics in the modern era of public management. Traditional norms of public management are getting unclear day by day because of the increased consideration for the efficiency and effectiveness of affairs of public sector organizations. One of the way governments adopted to increase the efficiency and effectiveness is the privatization of public services. Varner (2006) in his report titled ‘Government Privatization History, Example, and Issues’ given the definition of privatization as “Privatization is the process of transferring property from public ownership to private ownership and/or transferring the management of a service or activity from the government to the private sector”( Varner, 2006, p. 1). This paper assumes and proposes the privatization as independent variable and analyzes its impact on unemployment. So being an independent variable in a study it is very much appropriate to identify different aspects related to privatization. The significant contribution of Varner (2006) is that he has specified the forms of privatization as; “Complete Privatization, Privatization of Operations, Use of Contracts, Franchising, and Open Competition” (p. 1). In addition, he said that moves address the idea of reason what may be the causes ultimately ends up in privatizing the public entities. The provided list of seven reasons “Cost Reduction, Risk Transfer, Source of Revenue, Quality of Service, Expertise, Timeliness, Flexibility” (Varner, 2006, p. 4-6) may not be exhaustive one it has identified vary much prevalent potential causes also applicable in global scope. The other study variable proposed dependant is unemployment. Does literature any evidence regarding the very fact that privatization results in or…...

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