Job Creation, Job Destruction and Labour Demand in Slovenia

Leuven Institute for Central and East European Studies Working Paper 74/1998

Posted: 27 May 1999

See all articles by Štefan Bojnec

Štefan Bojnec

University of Primorska - Faculty of Management

Jozef Konings

Catholic University of Leuven (KUL) - LICOS - Centrum voor Transitie-economie; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Date Written: August 1998

Abstract

This paper uses a unique firm level data base of traditional and newly established private enterprises to investigate gross job flows and labour demand in the transition period in Slovenia. We find that job destruction dominates job creation in the early years of transition, but later in the transition job destruction diminishes. The excess job reallocation rate, a measure for restructuring, is found to be rather low. We find that newly established private firms or de novo firms are fundamentally the most dynamic ones in terms of job creation. We estimate a reduced labour demand equation controlling for ownership and competitive pressure and find that the estimated employment elasticity with respect to sales is rather low, 12%. We do not find any difference in this elasticity if we split the sample in expanding versus contracting firms. Furthermore we cannot find evidence that competitive pressure has any impact on the demand for labour. We do find that de novo firms have a higher employment growth than traditional firms.

JEL Classification: J63

Suggested Citation

Bojnec, Štefan and Konings, Jozef, Job Creation, Job Destruction and Labour Demand in Slovenia (August 1998). Leuven Institute for Central and East European Studies Working Paper 74/1998, Available at SSRN: https://ssrn.com/abstract=166231

Štefan Bojnec (Contact Author)

University of Primorska - Faculty of Management ( email )

Cankarjeva 5
Koper, 6000
Slovenia

Jozef Konings

Catholic University of Leuven (KUL) - LICOS - Centrum voor Transitie-economie ( email )

Waaistraat 6 - box 3511
Leuven, 3000
Belgium
+32 16 326 589 (Phone)
+32 16 326 599 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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