EconPapers    
Economics at your fingertips  
 

Creating Productive Jobs in East European Transition Economies: a Synthesis of Firm-Level Studies

J. David Brown () and John Earle ()

National Institute Economic Review, 2008, vol. 204, issue 1, 108-125

Abstract: The challenge for labour market policy in the new member states and other transition economies of Eastern Europe has been to redress the sharp drops in employment and rises in unemployment in a way that fosters the creation of productive jobs. This paper first documents the magnitude and productivity of job and worker reallocation. It then investigates the effects of privatisation, product and labour market liberalisation, and obstacles to growth in the new private sector on reallocation and its productivity in Hungary, Romania, Russia, and Ukraine. We find that market reform has resulted in a large increase in the pace of job reallocation, particularly that occurring between sectors and via firm turnover. Unlike under central planning, the job reallocation during the transition has contributed significantly to aggregate productivity growth. Privatisation has not only stimulated intrasectoral job reallocation, but the reallocation is more productive than that among remaining state firms. The estimated effect of privatisation on firm productivity is usually positive, but it varies considerably across countries. The productivity gains from privatisation have generally not come at the expense of workers, but are associated rather with increased wages and employment.

Keywords: Reallocation; transition; privatisation; employment; wages; productivity (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://ner.sagepub.com/content/204/1/108.abstract (text/html)

Related works:
Working Paper: Creating Productive Jobs in East European Transition Economies: A Synthesis of Firm-Level Studies Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:niesru:v:204:y:2008:i:1:p:108-125

Access Statistics for this article

More articles in National Institute Economic Review from National Institute of Economic and Social Research Contact information at EDIRC.
Series data maintained by SAGE Publications ().

 
Page updated 2018-02-10
Handle: RePEc:sae:niesru:v:204:y:2008:i:1:p:108-125