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

52 Pages Posted: 24 Sep 2001

See all articles by J. David Brown

J. David Brown

US Census Bureau Center for Economic Studies; IZA Institute of Labor Economics

John S. Earle

George Mason University - Schar School of Policy and Government; IZA Institute of Labor Economics

Date Written: September 2001

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 destruction, job allocation, productivity, transition, Russia

JEL Classification: E24, J63, O47, P23

Suggested Citation

Brown, J. David and Earle, John S., Gross Job Flows in Russian Industry Before and after Reforms: Has Destruction Become More Creative? (September 2001). Available at SSRN: https://ssrn.com/abstract=283700

J. David Brown (Contact Author)

US Census Bureau Center for Economic Studies ( email )

4600 Silver Hill Road
Washington, DC 20233
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301-763-8769 (Phone)
301-763-5935 (Fax)

IZA Institute of Labor Economics

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

John S. Earle

George Mason University - Schar School of Policy and Government ( email )

3351 Fairfax Drive
MS 3B1
Arlington, VA 22201
United States
703-993-8023 (Phone)

HOME PAGE: http://earle.gmu.edu

IZA Institute of Labor Economics

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

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