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

Brown, J. David; Earle, John S.

doi:10.2139/ssrn.277509

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

57 Pages Posted: 24 Jul 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: August 2001

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.

Keywords: Job Destruction, Job Reallocation, Productivity, Transition, Russia

JEL Classification: E24, J63, O47, P23

Suggested Citation: Suggested Citation

Brown, J. David and Earle, John S., Gross Job Flows in Russian Industry Before and after Reforms: Has Destruction Become More Creative? (August 2001). Available at SSRN: https://ssrn.com/abstract=277509 or http://dx.doi.org/10.2139/ssrn.277509