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Job growth in early transition: Comparing two paths

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  • Stepán Jurajda
  • Katherine Terrell

Abstract

Small start-up firms are the engine of job creation in early transition. We ask about differences in their growth across two different transition economies: Estonia, which experienced rapid destruction of pre-existing firms, and the Czech Republic, which reduced the old sector gradually. We find that the majority of job growth corresponds to within-industry reallocation. The within-industry growth of small start-up firms is similar in the two countries, in line with the convergence to Western industry firm-size distributions. We also find similar patterns in the evolution of wage differentials between start-ups and old firms and small differences in the extent of low-wage employment in start-ups across the two transition paths. Copyright (c)The European Bank for Reconstruction and Development, 2003.

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Bibliographic Info

Article provided by The European Bank for Reconstruction and Development in its journal The Economics of Transition.

Volume (Year): 11 (2003-06)
Issue (Month): 2 (June)
Pages: 291-320

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Handle: RePEc:bla:etrans:v:11:y:2003-06:i:2:p:291-320

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  1. Stepan Jurajda & Katherine Terrell, 2001. "What Drives the Speed of Job Reallocation during Episodes of Massive Adjustment?," CERGE-EI Working Papers wp170, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
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