Analysis of the ownership type effects on employment in Croatia

Sa？etak In the public discourse of transition economies, as well as in scientific literature focused on their functioning, there is still an active debate on whether privatization should be encouraged in view of its effects on the economy. In the context of the effects of privatization on employment, this paper focuses on labor market developments in Croatia. The primary emphasis is on the analysis of employment by activity and ownership type. The main aim of the paper is to determine the impact of privatization, i.e. the growing share of private ownership, on employment in Croatia. The estimate is conducted using the OLS method in the EViews statistical package. The results of the econometric analysis indicate that the increase in the share of private property leads to an increase in employment. In view of the results obtained it is recommended to further reduce the high share of state ownership in the Republic of Croatia