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Job Reallocation and Productivity Growth in the Ukrainian Transition

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  • Brown, J. David

    ()
    (U.S. Census Bureau)

  • Earle, John S.

    ()
    (George Mason University)

Abstract

We analyze the pace and patterns of job reallocation in Ukraine using 1992-2000 panel data on nearly the surviving universe of manufacturing firms inherited from the Soviet Union. Employment growth displays substantial increase in heterogeneity during this transition period, with a corresponding rise in excess job reallocation. Unlike data for Soviet Russia in the 1980s, Ukrainian job reallocation in the 1990s was clearly productivity-enhancing, both within and across industries. The paper also estimates the effects of firm and market characteristics on the magnitude of reallocation and on the extent to which it has contributed to aggregate productivity growth.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1349.

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Length: 31 pages
Date of creation: Oct 2004
Date of revision:
Publication status: published in: Comparative Economic Studies, 2006, 48 (2), 229-251
Handle: RePEc:iza:izadps:dp1349

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Keywords: Ukraine; privatization; job destruction; productivity decomposition; job creation;

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References

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  1. 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.
  2. 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.
  3. Richard Layard & Ansgar Richter, 1995. "How Much Unemployment is Needed for Restructuring?: The Russian Experience," CEP Discussion Papers, Centre for Economic Performance, LSE dp0238, Centre for Economic Performance, LSE.
  4. Philippe Aghion & Olivier J. Blanchard, 1994. "On the Speed of Transition in Central Europe," NBER Chapters, National Bureau of Economic Research, Inc, in: NBER Macroeconomics Annual 1994, Volume 9, pages 283-330 National Bureau of Economic Research, Inc.
  5. Stepan Jurajda & Katherine Terrell, 2000. "Optimal Speed of Transition: Micro Evidence from the Czech Republic," William Davidson Institute Working Papers Series 355, William Davidson Institute at the University of Michigan.
  6. Brown, J. David & Earle, John S., 2002. "Gross Job Flows in Russian Industry Before and After Reforms: Has Destruction Become More Creative?," Journal of Comparative Economics, Elsevier, vol. 30(1), pages 96-133, March.
  7. Alessandro Acquisti & Hartmut Lehmann, 2000. "Job Creation and Job Destruction in the Russian Federation," Trinity Economics Papers, Trinity College Dublin, Department of Economics 20001, Trinity College Dublin, Department of Economics.
  8. Sabirianova Klara, 2001. "The Great Human Capital Reallocation: A Study of Occupational Mobility in Transitional Russiah," EERC Working Paper Series 2k/11e, EERC Research Network, Russia and CIS.
  9. Lucia Foster & John C. Haltiwanger & C. J. Krizan, 2001. "Aggregate Productivity Growth. Lessons from Microeconomic Evidence," NBER Chapters, National Bureau of Economic Research, Inc, in: New Developments in Productivity Analysis, pages 303-372 National Bureau of Economic Research, Inc.
  10. Bilsen, Valentijn & Konings, Jozef, 1998. "Job Creation, Job Destruction, and Growth of Newly Established, Privatized, and State-Owned Enterprises in Transition Economies: Survey Evidence from Bulgaria, Hungary, and Romania," Journal of Comparative Economics, Elsevier, vol. 26(3), pages 429-445, September.
  11. John S. Earle, 1997. "Industrial Decline and Labor Reallocation in Romania," William Davidson Institute Working Papers Series 118, William Davidson Institute at the University of Michigan.
  12. J. David Brown & John S. Earle, 2003. "The reallocation of workers and jobs in Russian industry," The Economics of Transition, The European Bank for Reconstruction and Development, The European Bank for Reconstruction and Development, vol. 11(2), pages 221-252, June.
  13. J. David Brown & John Earle, 2004. "Economic Reforms and Productivity-Enhancing Reallocation in the Post-Soviet Transition," CERT Discussion Papers, Centre for Economic Reform and Transformation, Heriot Watt University 0404, Centre for Economic Reform and Transformation, Heriot Watt University.
  14. George S Olley & Ariel Pakes, 1992. "The Dynamics Of Productivity In The Telecommunications Equipment Industry," Working Papers, Center for Economic Studies, U.S. Census Bureau 92-2, Center for Economic Studies, U.S. Census Bureau.
  15. 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.
  16. 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).
  17. 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.
  18. 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.
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Citations

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Cited by:
  1. Kupets, Olga, 2006. "Determinants of unemployment duration in Ukraine," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 228-247, June.
  2. J. David Brown & John Earle, 2008. "Understanding the Contributions of Reallocation to Productivity Growth: Lessons from a Comparative Firm-Level Analysis," CERT Discussion Papers, Centre for Economic Reform and Transformation, Heriot Watt University 0805, Centre for Economic Reform and Transformation, Heriot Watt University.
  3. Giulia Faggio, 2007. "Job Destruction, Job Creation and Unemployment in Transition Countries: What Can We Learn?," CEP Discussion Papers, Centre for Economic Performance, LSE dp0798, Centre for Economic Performance, LSE.
  4. Jurajda, Stepán & Terrell, Katherine, 2008. "Job Reallocation in Two Cases of Massive Adjustment in Eastern Europe," World Development, Elsevier, Elsevier, vol. 36(11), pages 2144-2169, November.

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