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Gross Job Flows in Russian Industry Before and After Reforms: Has Destruction Become More Creative?

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  • Brown, J. David
  • Earle, John S.

Abstract

This Paper uses 1985-99 manufacturing census data for old Russian enterprises to calculate the magnitude and productivity effects of gross job flow rates before and after reforms. Job creation was low throughout the period in this sector, but increased slightly during the transition, while job destruction rose markedly. Heterogeneity in firm employment change also increased significantly. Intra- and inter-sectoral job reallocation had no effect on aggregate labour productivity during the socialist period, while they have made a strong positive contribution during the transition. Privatization and product market competition have not led to greater job destruction overall, but rather have helped to focus the destruction in the firms with the lowest productivity.

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Bibliographic Info

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

Volume (Year): 30 (2002)
Issue (Month): 1 (March)
Pages: 96-133

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Handle: RePEc:eee:jcecon:v:30:y:2002:i:1:p:96-133

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

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References

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  1. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262540932, December.
  2. Valentijn Bilsen & Jozef Konings, 1997. "Job Creation, Job Destruction and Growth of Newly Established, Privatized and State-Owned Enterprises in Transition Economies: Survey Evidence from Bulgaria, Hungary and Romania," William Davidson Institute Working Papers Series, William Davidson Institute at the University of Michigan 106, William Davidson Institute at the University of Michigan.
  3. John Haltiwanger & C J Krizan & Lucia Foster, 1998. "Aggregate Productivity Growth: Lessons From Microeconomic Evidence," Working Papers, Center for Economic Studies, U.S. Census Bureau 98-12, Center for Economic Studies, U.S. Census Bureau.
  4. Brown, J David & Earle, John S, 2001. "Privatization, Competition and Reform Strategies: Theory and Evidence from Russian Enterprise Panel Data," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2758, C.E.P.R. Discussion Papers.
  5. Ricardo J. Caballero & Mohamad L. Hammour, 2001. "Institutions, Restructuring and Macroeconomic Performance," DELTA Working Papers, DELTA (Ecole normale supérieure) 2001-03, DELTA (Ecole normale supérieure).
  6. Sorm, Vit & Terrell, Katherine, 2000. "Sectoral Restructuring and Labor Mobility: A Comparative Look at the Czech Republic," Journal of Comparative Economics, Elsevier, Elsevier, vol. 28(3), pages 431-455, September.
  7. 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.
  8. Davis, Steven J. & Haltiwanger, John, 1999. "Gross job flows," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 41, pages 2711-2805 Elsevier.
  9. Haltiwanger, John C. & Vodopivec, Milan, 1999. "Gross worker and job flows in a transition economy : an analysis of Estonia," Policy Research Working Paper Series, The World Bank 2082, The World Bank.
  10. Stepan Jurajda & Katherine Terrell, 2000. "Optimal Speed of Transition: Micro Evidence from the Czech Republic," William Davidson Institute Working Papers Series, William Davidson Institute at the University of Michigan 355, William Davidson Institute at the University of Michigan.
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  14. Faggio, Giulia & Konings, Jozef, 1999. "Gross Job Flows and Firm Growth in Transition Countries: Evidence Using Firm Level Data on Five Countries," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2261, C.E.P.R. Discussion Papers.
  15. John S. Earle, 1997. "Industrial Decline and Labor Reallocation in Romania," William Davidson Institute Working Papers Series, William Davidson Institute at the University of Michigan 118, William Davidson Institute at the University of Michigan.
  16. Earle, John S & Estrin, Saul, 1997. "After Voucher Privatization: The Structure of Corporate Ownership in Russian Manufacturing Industry," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1736, C.E.P.R. Discussion Papers.
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