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Gross Job Flows in Russian Industry Before and After Reforms: Has Destruction Become More Creative?

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  • Brown, J. David

    (U.S. Census Bureau)

  • Earle, John S.

    (George Mason University)

Abstract

This paper uses 1985-1999 manufacturing census data for old Russian enterprises to calculate the magnitude and productivity effects of gross job flow rates before and after reforms. Job creation was low throughout the period in this sector, but increased slightly during the transition, while job destruction rose markedly. Heterogeneity in firm employment change also increased significantly. Intra- and inter-sectoral job reallocation had no effect on aggregate labor productivity during the socialist period, while they have made a strong positive contribution during the transition. Privatization and product market competition have not led to greater job destruction overall, but rather have helped to focus the destruction in the firms with the lowest productivity.

Suggested Citation

  • Brown, J. David & Earle, John S., 2001. "Gross Job Flows in Russian Industry Before and After Reforms: Has Destruction Become More Creative?," IZA Discussion Papers 351, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp351
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    References listed on IDEAS

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    More about this item

    Keywords

    transition; Job destruction; job reallocation; productivity; Russia;
    All these keywords.

    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 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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