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Job Reallocation in Two Cases of Massive Adjustment in Eastern Europe

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  • Jurajda, Stepán
  • Terrell, Katherine

Abstract

Summary This paper uses worker-level data to characterize economy-wide job creation and job destruction during periods of massive structural adjustment. We contrast the gradualist Czech and the rapid Estonian approach to the destruction of the communist economy and assess their experience in light of selected theories of reallocation with frictions. We find that gradual job destruction combined with job creation support allows extensive reallocation to concur with low unemployment. Drastic job destruction, on the other hand, need not slow down job creation as long as unemployment benefits are kept very low.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 36 (2008)
Issue (Month): 11 (November)
Pages: 2144-2169

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Handle: RePEc:eee:wdevel:v:36:y:2008:i:11:p:2144-2169

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: job creation job destruction transition Czech Republic Estonia Eastern Europe;

References

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Cited by:
  1. Zuzana Brixiova & Balázs Égert, 2010. "Modeling Institutions, Start-ups and Productivity during Transition," OECD Economics Department Working Papers 773, OECD Publishing.
  2. Ariane Tichit Miniscloux & Solenne Tanguy, 2012. "Initial reforms and dynamics of transition," Working Papers halshs-00687532, HAL.

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