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Job Reallocation and Productivity Growth in the Ukrainian Transition

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  • J David Brown

    (School of Management and Languages, Heriot-Watt University, Riccarton, Edinburgh EH14 4AS, UK.)

  • John S Earle

    (Upjohn Institute for Employment Research, 300 S, Westnedge Ave., Kalamazoo, MI 49007, Central European University, Nador Utea 9, H-1051 Budapest, Hungary.)

Abstract

We analyse the pace and patterns of job reallocation in Ukraine using 1992–2000 panel data on nearly the universe of continuing manufacturing firms inherited from the Soviet Union. Employment growth displays a 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 speed of the increase in reallocation and its effect on aggregate productivity was somewhat slower than in Russia, however, perhaps reflecting the more ‘gradualist’ reform strategy in Ukraine. Comparative Economic Studies (2006) 48, 229–251. doi:10.1057/palgrave.ces.8100127

Suggested Citation

  • J David Brown & John S Earle, 2006. "Job Reallocation and Productivity Growth in the Ukrainian Transition," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 48(2), pages 229-251, June.
  • Handle: RePEc:pal:compes:v:48:y:2006:i:2:p:229-251
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    Cited by:

    1. Faggio, Giulia, 2007. "Job destruction, job creation and unemployment in transition countries: what can we learn?," LSE Research Online Documents on Economics 19716, London School of Economics and Political Science, LSE Library.
    2. Jurajda, Stepán & Terrell, Katherine, 2008. "Job Reallocation in Two Cases of Massive Adjustment in Eastern Europe," World Development, Elsevier, vol. 36(11), pages 2144-2169, November.
    3. Kupets, Olga, 2006. "Determinants of unemployment duration in Ukraine," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 228-247, June.
    4. Brown, J. David & Earle, John S., 2008. "Understanding the Contributions of Reallocation to Productivity Growth: Lessons from a Comparative Firm-Level Analysis," IZA Discussion Papers 3683, Institute of Labor Economics (IZA).
    5. Jan Svejnar & Joanna Tyrowicz & Lucas van der Velde, 2015. "Productivity and Inequality Effects of Rapid Labor Reallocation – Insights from a Meta-Analysis of Studies on Transition," Working Papers 2015-11, Faculty of Economic Sciences, University of Warsaw.
    6. Stanislaw Cichocki & Joanna Tyrowicz & Lucas van der Velde, 2017. "Cyclical Trend of Labor Reallocation in Poland: Transition and Structural Change," Eastern European Economics, Taylor & Francis Journals, vol. 55(6), pages 543-556, November.
    7. Tyrowicz, Joanna & van der Velde, Lucas, 2018. "Labor reallocation and demographics," Journal of Comparative Economics, Elsevier, vol. 46(1), pages 381-412.
    8. Joanna Tyrowicz & Lucas Velde & Jan Svejnar, 2017. "Effects Of Labor Reallocation On Productivity And Inequality—Insights From Studies On Transition," Journal of Economic Surveys, Wiley Blackwell, vol. 31(3), pages 712-732, July.
    9. J. David Brown & John S. Earle & Solomiya Shpak & Volodymyr Vakhitov, 2019. "Is Privatization Working in Ukraine?," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 61(1), pages 1-35, March.
    10. Almos Telegdy, 2013. "Employment Adjustment during the Global Crisis: Differences between State-Owned and Private Enterprises," Budapest Working Papers on the Labour Market 1311, Institute of Economics, Centre for Economic and Regional Studies.
    11. Gabriela Grotkowska & Leszek Wincenciak & Tomasz Gajderowicz, 2016. "Public-private wage differential in a post-transition economy: A copula approach to the switching regression model," Working Papers 2016-19, Faculty of Economic Sciences, University of Warsaw.
    12. Joanna Tyrowicz & Lucas van der Velde, 2014. "Can We Really Explain Worker Flows in Transition Economies?," Working Papers 2014-28, Faculty of Economic Sciences, University of Warsaw.

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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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