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Job Creation, Job Destruction and Labour Demand in Slovenia

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  • Stefan Bojnec
  • Jozef Konings

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Abstract

This paper uses a unique firm level data base of traditional and newly established private enterprises to investigate gross job flows and labour demand in the transition period in Slovenia. We find that job destruction dominates job creation in the early years of transition, but later in the transition job destruction diminishes. The excess job reallocation rate, a measure for restructuring, is found to be rather low. We find that newly established private firms or de novo firms are fundamentally the most dynamic ones in terms of job creation. We estimate a reduced labour demand equation controlling for ownership and competitive pressure and find that the estimated employment elasticity with respect to sales is rather low, 12%. We do not find any difference in this elasticity if we split the sample in expanding versus contracting firms. Furthermore we cannot find evidence that competitive pressure has any impact on the demand for labour. We do find that de novo firms have a higher employment growth than traditional firms.

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File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp74.pdf
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Bibliographic Info

Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 7498.

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Length: 21 pages
Date of creation: 01 Aug 1998
Date of revision:
Handle: RePEc:lic:licosd:7498

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Keywords: Job creation; Job destruction; Slovenia; Transition; Private firms;

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References

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  1. 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.
  2. Davis, Steven J & Haltiwanger, John C, 1992. "Gross Job Creation, Gross Job Destruction, and Employment Reallocation," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 819-63, August.
  3. Konings, Jozef, 1997. "Firm growth and ownership in transition countries," Economics Letters, Elsevier, vol. 55(3), pages 413-418, September.
  4. 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.
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Cited by:
  1. Milan Vodopivec & Peter F. Orazem, 2000. "Male-female differences in labor market outcomes during the early transition to market: The cases of Estonia and Slovenia," Journal of Population Economics, Springer, vol. 13(2), pages 283-303.
  2. 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.
  3. 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.

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