Pros

State ownership and central planning are generally thought to be associated with excess employment.

Soft budget constraints and lack of competition under state ownership may lead to rents for incumbent employees.

Private owners are likely to aim for profit maximization rather than political objectives; they may have access to skills, markets, and technologies that increase output, employment, and productivity.

Productivity increases may lead to wage increases.

Positive effects are more likely the larger the scale and productivity effects, which may be greater under experienced, skilled investors in better business climates.