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Job Creation, Job Destruction, and Growth of Newly Established, Privatized, and State-Owned Enterprises in Transition Economies: Survey Evidence from Bulgaria, Hungary, and Romania

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  • Bilsen, Valentijn
  • Konings, Jozef

Abstract

This paper reports new and unique firm level survey evidence to investigate the micro economic nature of the growth process and structural change in three transition countries, Romania, Bulgaria and Hungary. In particular we investigate gross job creation and destruction in newly established private (de novo) firms and "traditional" ones, being state owned and privatized firms and find that the de novo private firms are the most dynamic ones in terms of job creation. In addition, we find that job reallocation in the early years of transition occurs predominantly between sectors, while later on in the transition more within sector job reallocation is observed. After controlling for size and life cycle effects we find that de novo private firms consistently outperform the state owned and privatized enterprises. In addition, we find that state owned enterprises are not significantly different in their employment behavior from privatized firms. We find mixed effects of competition on employment growth. They vary according to sector and country. Finally, we find evidence that suggests efficiency wage payments are important for employment growth in Hungary, but not in Romania and Bulgaria.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 26 (1998)
Issue (Month): 3 (September)
Pages: 429-445

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Handle: RePEc:eee:jcecon:v:26:y:1998:i:3:p:429-445

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Web page: http://www.elsevier.com/locate/inca/622864

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  1. Steve J. Davis & John Haltiwanger, 1991. "Gross Job Creation, Gross Job Destruction and Employment Reallocation," NBER Working Papers 3728, National Bureau of Economic Research, Inc.
  2. Philippe Aghion & Olivier Jean Blanchard, 1994. "On the Speed of Transition Central Europe," NBER Working Papers 4736, National Bureau of Economic Research, Inc.
  3. Aghion, P. & Blanchard, O.J., 1993. "On the Speed of Transition in Central Europe," Working papers 93-8, Massachusetts Institute of Technology (MIT), Department of Economics.
  4. J. Earle & S. Estrin & L. Leshchenko, 1996. "Ownership structures, patterns of control and enterprise behavior in Russia," LSE Research Online Documents on Economics 20642, London School of Economics and Political Science, LSE Library.
  5. M. Belka & Saul Estrin & M. E. Schaffer & I. J. Singh, 1995. "Enterprise adjustment in Poland: evidence from a survey of 200 private, privatised, and state-owned firms," LSE Research Online Documents on Economics 20765, London School of Economics and Political Science, LSE Library.
  6. Dunne, Timothy & Roberts, Mark J & Samuelson, Larry, 1989. "The Growth and Failure of U.S. Manufacturing Plants," The Quarterly Journal of Economics, MIT Press, vol. 104(4), pages 671-98, November.
  7. Roland, Gerard, 1994. "On the Speed and Sequencing of Privatisation and Restructuring," Economic Journal, Royal Economic Society, vol. 104(426), pages 1158-68, September.
  8. Konings, Jozef, 1995. "Job Creation and Job Destruction in the UK Manufacturing Sector," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 5-24, February.
  9. Boeri, Tito & Cramer, Ulrich, 1992. "Employment growth, incumbents and entrants : Evidence from Germany," International Journal of Industrial Organization, Elsevier, vol. 10(4), pages 545-565, December.
  10. Blanchflower, David G & Millward, Neil & Oswald, Andrew J, 1991. "Unionism and Employment Behaviour," Economic Journal, Royal Economic Society, vol. 101(407), pages 815-34, July.
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