Working Paper: CEPR ID: DP2951
Authors: J. David Brown; John S. Earle
Abstract: This Paper uses 1985-99 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 labour 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.
Keywords: job allocation; job destruction; productivity; Russia; transition
JEL Codes: E24; J63; O47; P23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Job destruction (J63) | Job reallocation (J62) |
| Economic reforms (E69) | Changes in job flows (J63) |
| Job flows (J60) | Productivity growth (O49) |
| Patterns of job flows (J60) | Heterogeneity in job flows (J69) |