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The microeconomics of creating productive jobs : a synthesis of firm-level studies in transition economies

Author

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  • Brown, J. David
  • Earle, John S.
Abstract
The challenge for labor market policy in the transition economies has been to redress the sharp drops in employment and rises in unemployment in a way that fosters the creation of productive jobs. The authors first document the magnitude and productivity of job and worker reallocation. Then they investigate the effects of privatization, product and labor market liberalization, and obstacles to growth inthe new private sector on reallocation and its productivity in Hungary, Romania, Russia, and Ukraine. The authors find that market reform has resulted in a large increase in the pace of job reallocation, particularly that occurring between sectors and through firm turnover. Unlike under central planning, the job reallocation during the transition has contributed significantly to aggregate productivity growth. Privatization has not only stimulated intrasectoral job reallocation, but the reallocation is more productive than that among remaining state firms. The effect of privatization on firm productivity varies considerably across countries and is not always positive. The productivity gains from privatization have generally not come at the expense of workers but are rather associated with increased wages and employment.

Suggested Citation

  • Brown, J. David & Earle, John S., 2006. "The microeconomics of creating productive jobs : a synthesis of firm-level studies in transition economies," Policy Research Working Paper Series 3886, The World Bank.
    • Handle: RePEc:wbk:wbrwps:3886
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    References listed on IDEAS

    as
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    Cited by:

    1. Randolph Luca Bruno & Maria Bytchkova & Saul Estrin, 2013. "Institutional Determinants of New Firm Entry in Russia: A Cross-Regional Analysis," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1740-1749, December.
    2. Tom Coupé & Hannah Vakhitova, 2013. "Costs and Benefits of Labour Mobility between the EU and the Eastern Partnership Partner Countries. Country report: Ukraine," CASE Network Studies and Analyses 0464, CASE-Center for Social and Economic Research.
    3. Estrin, Saul & Bruno, Randolph & Bytchkova, Maria, 2011. "Institutions And Entry: A Cross-Regional Analysis In Russia," CEPR Discussion Papers 8283, C.E.P.R. Discussion Papers.
    4. Linz, Susan J. & Semykina, Anastasia, 2009. "Personality traits as performance enhancers? A comparative analysis of workers in Russia, Armenia and Kazakhstan," Journal of Economic Psychology, Elsevier, vol. 30(1), pages 71-91, February.
    5. Eteri Kvintradze, 2010. "Russia's Output Collapse and Recovery: Evidence from the Post-Soviet Transition," IMF Working Papers 2010/089, International Monetary Fund.

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    Keywords

    Labor Markets; Small Scale Enterprise; Microfinance; Economic Theory&Research; Privatization;
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