Creating Productive Jobs in East European Transition Economies: A Synthesis of Firm-Level Studies
AbstractThe challenge for labour market policy in the new member states and other transition economies of Eastern Europe has been to redress the sharp drops in employment and rises in unemployment in a way that fosters the creation of productive jobs. This paper first documents the magnitude and productivity of job and worker reallocation. It then investigates the effects of privatisation, product and labour market liberalisation, and obstacles to growth in the new private sector on reallocation and its productivity in Hungary, Romania, Russia, and Ukraine. We find that market reform has resulted in a large increase in the pace of job reallocation, particularly that occurring between sectors and via firm turnover. Unlike under central planning, the job reallocation during the transition has contributed significantly to aggregate productivity growth. Privatisation has not only stimulated intrasectoral job reallocation, but the reallocation is more productive than that among remaining state firms. The estimated effect of privatisation on firm productivity is usually positive, but it varies considerably across countries. The productivity gains from privatisation have generally not come at the expense of workers, but are associated rather with increased wages and employment.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by W.E. Upjohn Institute for Employment Research in its series Upjohn Working Papers and Journal Articles with number jse2008.
Date of creation:
Date of revision:
Note: Appears in National Institute Economic Review 204(1): 108-125
Contact details of provider:
Postal: 300 S. Westnedge Ave. Kalamazoo, MI 49007 USA
Web page: http://www.upjohn.org
More information through EDIRC
transition economies; job creation; firm-level data;
Other versions of this item:
- J. David Brown & John S. Earle, 2008. "Creating Productive Jobs in East European Transition Economies: a Synthesis of Firm-Level Studies," National Institute Economic Review, National Institute of Economic and Social Research, vol. 204(1), pages 108-125, April.
- P2 - Economic Systems - - Socialist Systems and Transition Economies
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Bah, El-hadj & Brada, Josef C. & Yigit, Taner, 2011. "With a little help from our friends: The effect of USAID assistance on SME growth in a transition economy," Journal of Comparative Economics, Elsevier, vol. 39(2), pages 205-220, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.