Job creation, job destruction and employment growth in transition countries in the 90's

Giulia Faggio; Jozef Konings

doi:10.1016/S0939-3625(03)00036-0

Job creation, job destruction and employment growth in transition countries in the 90's

Giulia Faggio, Jozef Konings

Economics Department

Research output: Contribution to journal › Article › peer-review

46 Citations (Scopus)

Abstract

We analyze job flows in five transition countries: Poland, Estonia, Slovenia, Bulgaria, and Romania. Using comparable firm level data over the years 1993-1997, we find that in early transition job destruction dominates job creation, while the latter is picking over time; most job reallocation occurs within, rather than across sectors; ownership and firm size are the most relevant characteristics for understanding the dynamics of job flows. We investigate job creation and destruction at the firm level by estimating a firm growth equation. Our results indicate patterns of gross job flows and firm growth remarkably similar to those in market-based economies.

Original language	English
Pages (from-to)	129-154
Number of pages	26
Journal	Economic Systems
Volume	27
Issue number	2
DOIs	https://doi.org/10.1016/S0939-3625(03)00036-0
Publication status	Published - Jun 2003

Keywords

Job creation
Job destruction
Ownership
Transition economics

ASJC Scopus subject areas

Economics and Econometrics

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10.1016/S0939-3625(03)00036-0

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title = "Job creation, job destruction and employment growth in transition countries in the 90's",

abstract = "We analyze job flows in five transition countries: Poland, Estonia, Slovenia, Bulgaria, and Romania. Using comparable firm level data over the years 1993-1997, we find that in early transition job destruction dominates job creation, while the latter is picking over time; most job reallocation occurs within, rather than across sectors; ownership and firm size are the most relevant characteristics for understanding the dynamics of job flows. We investigate job creation and destruction at the firm level by estimating a firm growth equation. Our results indicate patterns of gross job flows and firm growth remarkably similar to those in market-based economies.",

keywords = "Job creation, Job destruction, Ownership, Transition economics",

author = "Giulia Faggio and Jozef Konings",

note = "Funding Information: This paper has benefited from presentations at the K.U. Leuven, the European Commission (DG II), a World Bank Conference on “Labour Market Adjustment and Restructuring in Transition Economies”, Romania, April 1999, the EALE Conference 2000. We also thank Hartmut Lehmann, Hylke Vandenbussche, Kathy Terrell, Paul Walsh, Frederic Warzynski, Ciara Whelan, and two referees for comments and suggestions. All remaining errors are ours. This paper is part of a Phare Ace Grant Number p6203-r and of an FWO project on firm restructuring. ",

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N1 - Funding Information: This paper has benefited from presentations at the K.U. Leuven, the European Commission (DG II), a World Bank Conference on “Labour Market Adjustment and Restructuring in Transition Economies”, Romania, April 1999, the EALE Conference 2000. We also thank Hartmut Lehmann, Hylke Vandenbussche, Kathy Terrell, Paul Walsh, Frederic Warzynski, Ciara Whelan, and two referees for comments and suggestions. All remaining errors are ours. This paper is part of a Phare Ace Grant Number p6203-r and of an FWO project on firm restructuring.

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N2 - We analyze job flows in five transition countries: Poland, Estonia, Slovenia, Bulgaria, and Romania. Using comparable firm level data over the years 1993-1997, we find that in early transition job destruction dominates job creation, while the latter is picking over time; most job reallocation occurs within, rather than across sectors; ownership and firm size are the most relevant characteristics for understanding the dynamics of job flows. We investigate job creation and destruction at the firm level by estimating a firm growth equation. Our results indicate patterns of gross job flows and firm growth remarkably similar to those in market-based economies.

AB - We analyze job flows in five transition countries: Poland, Estonia, Slovenia, Bulgaria, and Romania. Using comparable firm level data over the years 1993-1997, we find that in early transition job destruction dominates job creation, while the latter is picking over time; most job reallocation occurs within, rather than across sectors; ownership and firm size are the most relevant characteristics for understanding the dynamics of job flows. We investigate job creation and destruction at the firm level by estimating a firm growth equation. Our results indicate patterns of gross job flows and firm growth remarkably similar to those in market-based economies.

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KW - Ownership

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