Dynamics of Firm-level Job Flows in Slovenia, 1996–2011

Biswajit Banerjee and Manca Jesenko
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Manca Jesenko: Bank of Slovenia, Slovenska 35, 1505 Ljubljana, Slovenia

Comparative Economic Studies, 2014, vol. 56, issue 1, 77-109

Abstract: Firm-level employment changes were associated with simultaneous high rates of gross job creation, destruction, and reallocation. These job flows primarily reflected persistent firm-level employment changes. There was considerable variation in job flow rates across sectors. Sectors that created more jobs also destroyed more jobs. Job destruction was more volatile than job creation. Relative volatility was negatively related to net employment growth. Sectoral and aggregate economy-wide shocks exerted considerable influence on variations in job creation and destruction rates. However, idiosyncratic factors were also important. Passive learning about initial conditions explained a small, but significant, fraction of job reallocation.

Date: 2014
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