What Drives the Speed of Job Reallocation During Episodes of Massive Adjustment?

Stepan Jurajda and Katherine Terrell

No 601, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper uses individual-level data to characterize economy-wide job creation and destruction during periods of massive structural adjustment. We contrast the gradualist Czech and the rapid Estonian approach to the destruction of the communist economy to provide evidence on selected macroeconomic theories of reallocation with frictions. We find that gradualism (slowing down job destruction) effectively synchronizes job creation and destruction. Drastic job destruction leads to little or no slowdown of job creation. Small newly established firms are the under-researched fountainhead of jobs during the transition from communist to market oriented economies. JEL Classification: E0, J2, O1, O4, P2. Keywords: job creation, job destruction, transition

Keywords: transition; job destruction; job creation (search for similar items in EconPapers)
JEL-codes: E0 J2 O1 O4 P2 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2002-10
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Citations: View citations in EconPapers (19)

Published - published as "Job Reallocation in Two Cases of Massive Adjustment in Eastern Europe" in: World Development, 2008, 36 (11), 2144-2169

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Related works:
Working Paper: What Drives the Speed of Job Reallocation During Episodes of Massive Adjustment? (2002)
Working Paper: What Drives the Speed of Job Reallocation During Episodes of Massive Adjustment? (2002)
Working Paper: What Drives the Speed of Job Reallocation during Episodes of Massive Adjustment? (2001)
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