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Gross job flows in Ukraine

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  • Jozef Konings
  • Olga Kupets
  • Hartmut Lehmann

Abstract

This paper documents and analyses gross job flows and their determinants in Ukraine using a dataset of more than 2200 Ukrainian firms operating in manufacturing and non-manufacturing for the years 1998-2000. Job destruction dominates job creation in both 1999 and 2000. Another clear-cut result of our analysis is the strong positive effect of new private firms on net employment growth. We also find an inverse relationship between job reallocation and size for both manufacturing and non-manufacturing, while only in the latter sector is employment growth inversely related with size. The main focus of the paper is the effect of trade flows on employment adjustment in manufacturing. Our results show that both employment growth and job reallocation at the firm and two-digit sector level are affected by strong exposure to import competition and product market competition in export markets. These effects are more pronounced when we consider trade flows to the world at large and to the EU than when the analysis is based on trade flows to the CIS. 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: 321-356

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Handle: RePEc:bla:etrans:v:11:y:2003-06:i:2:p:321-356

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References

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  1. Jozef Konings & Patrick Paul Walsh, 1999. "Employment Dynamics of Newly Established and Traditional Firms: A Comparison of Russia an the Ukraine," LICOS Discussion Papers 8199, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  2. Konings, Jozef & Kupets, Olga & Lehmann, Hartmut, 2003. "Gross Job Flows in Ukraine: Size, Ownership and Trade Effects," CEPR Discussion Papers 3802, C.E.P.R. Discussion Papers.
  3. John Baldwin & Timothy Dunne & John Haltiwanger, 1994. "A Comparison of Job Creation and Job Destruction in Canada and the United States," NBER Working Papers 4726, National Bureau of Economic Research, Inc.
  4. Faggio, Giulia & Konings, Jozef, 2003. "Job creation, job destruction and employment growth in transition countries in the 90s," Economic Systems, Elsevier, vol. 27(2), pages 129-154, June.
  5. Brown, J. David & Earle, John S., 2001. "Gross Job Flows in Russian Industry Before and After Reforms: Has Destruction Become More Creative?," IZA Discussion Papers 351, Institute for the Study of Labor (IZA).
  6. Konings, Jozef & Lehmann, Hartmut, 2001. "Marshall and Labour Demand in Russia: Going Back to Basics," IZA Discussion Papers 372, Institute for the Study of Labor (IZA).
  7. Brown, J. David & Earle, John S., 2002. "Job Reallocation and Productivity Growth Under Alternative Economic Systems and Policies: Evidence from the Soviet Transition," IZA Discussion Papers 644, Institute for the Study of Labor (IZA).
  8. Alessandro Acquisti & Hartmut Lehmann, 2000. "Job Creation and Job Destruction in the Russian Federation," Trinity Economics Papers 20001, Trinity College Dublin, Department of Economics.
  9. John Haltiwanger & Milan Vodopivec, 2003. "Worker flows, job flows and firm wage policies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(2), pages 253-290, June.
  10. Michael W. Klein & Scott Schuh & Robert K. Triest, 1999. "Job creation, job destruction, and the real exchange rate," Working Papers 99-11, Federal Reserve Bank of Boston.
  11. Repkine, Alexandre & Walsh, Patrick Paul, 1999. "Evidence of European Trade and Investment U-Shaping Industrial Output in Bulgaria, Hungary, Poland, and Romania," Journal of Comparative Economics, Elsevier, vol. 27(4), pages 730-752, December.
  12. Haltiwanger, John C. & Vodopivec, Milan, 2002. "Worker Flows, Job Flows and Firm Wage Policies: An Analysis of Slovenia," IZA Discussion Papers 569, Institute for the Study of Labor (IZA).
  13. Davis, Steven J. & Haltiwanger, John, 1999. "Gross job flows," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 41, pages 2711-2805 Elsevier.
  14. Haltiwanger, John C. & Vodopivec, Milan, 1999. "Gross worker and job flows in a transition economy : an analysis of Estonia," Policy Research Working Paper Series 2082, The World Bank.
  15. Jozef Konings & Patrick Paul Walsh, 1999. "Disorganization in the process of transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(1), pages 29-46, March.
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Citations

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Cited by:
  1. Stepan Jurajda & Juraj Stancik, 2009. "Foreign Ownership and Corporate Performance: The Czech Republic at EU Entry," CERGE-EI Working Papers wp389, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
  2. Lehmann, Hartmut & Pignatti, Norberto & Wadsworth, Jonathan, 2005. "The Incidence and Cost of Job Loss in the Ukrainian Labor Market," IZA Discussion Papers 1770, Institute for the Study of Labor (IZA).
  3. Blanchard, Olivier & Kremer, Michael R., 1997. "Disorganization," Scholarly Articles 3659691, Harvard University Department of Economics.
  4. Ralitza Dimova, 2003. "The Impact of Structural Reforms on Employment Growth and Labour Productivity: Evidence from Bulgaria and Romania," LICOS Discussion Papers 13203, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  5. Jurajda, Stepán & Terrell, Katherine, 2008. "Job Reallocation in Two Cases of Massive Adjustment in Eastern Europe," World Development, Elsevier, vol. 36(11), pages 2144-2169, November.
  6. Tomasz Mickiewicz & Christopher Gerry & Kate Bishop, . "Privatisation, Corporate Control and Employment Growth: Evidence From A Panel of Large Polish Firms, 1996-2002," Working Papers 47 Key Words: employment,, CENTRE FOR THE STUDY OF ECONOMIC AND SOCIAL CHANGE IN EUROPE,School of Slavonic and East European Studies,University College London (SSEES,UCL).
  7. World Bank, 2005. "The Quest for Equitable Growth in the Slovak Republic : A World Bank Living Standards Assessment," World Bank Other Operational Studies 8312, The World Bank.

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