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Job creation, job destruction, labour mobility and wages in Poland, 1988-1998

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  • John E. Jackson
  • Bogdan W. Mach

Abstract

Longitudinal data from interviews with Poles of working age conducted in 1988, 1993 and 1998 combined with longitudinal firm-level data present a detailed view of the transition from a state-dominated to a market economy. Job losses in state firms and job creation in new private firms are the dominant employment changes, other than retirements from the labour force. In the Polish case, a significant proportion of this movement over the 1988-1998 period involves a spell of unemployment or exit from the labour force before obtaining a private sector job. This results in considerable job competition between workers leaving the state sector and those who are out of the labour force or unemployed. Income differences between the state sector and the "de novo" sector appear to have little association with mobility. These results suggest that movement to the new private sector is more likely to be the result of job loss than the result of people looking for better, higher paying jobs. Self-employment plays an important role in the development of the private sector. People working on their own account have higher incomes than wageworkers and are likely to become owners employing additional workers. Incomes are higher in regions with high rates of job creation and depressed in regions with job destruction. Copyright (c) 2009 The Authors. Journal compilation (c) 2009 The European Bank for Reconstruction and Development.

Suggested Citation

  • John E. Jackson & Bogdan W. Mach, 2009. "Job creation, job destruction, labour mobility and wages in Poland, 1988-1998," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 17(3), pages 503-530, July.
  • Handle: RePEc:bla:etrans:v:17:y:2009:i:3:p:503-530
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    Cited by:

    1. Ma, Xinxin & Li, Shi, 2016. "Economic Transition and the Determinants of Self-employment in Urban China: 2007-2013," CEI Working Paper Series 2016-3, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    2. Åstebro, Thomas & Chen, Jing, 2014. "The entrepreneurial earnings puzzle: Mismeasurement or real?," Journal of Business Venturing, Elsevier, vol. 29(1), pages 88-105.
    3. Shelest Olena, 2015. "Risk of Investments in Human Capital and Expected Worker Mobility," International Journal of Management and Economics, De Gruyter Open, vol. 47(1), pages 82-106, September.
    4. Alexandra Gerbasi & Dominika Latusek, 2015. "Trust-building in international business ventures," Grenoble Ecole de Management (Post-Print) hal-01137667, HAL.
    5. Anna Baranowska-Rataj & Iga Magda, 2014. "Inequality in the risk of job loss between young and prime-age workers: Can it be explained by human capital or structural factors?," Working Papers 73, Institute of Statistics and Demography, Warsaw School of Economics.

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