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Job creation and job destruction in a regulated labor market: The case of Austria

Alfred Stiglbauer (), Florian Stahl, Rudolf Winter-Ebmer () and Josef Zweimüller ()
Additional contact information
Florian Stahl: University of Zurich, Switzerland

No 2002-05, Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria

Abstract: We study Austrian job reallocation in the period of 1978 to 1998, using a large administrative dataset where we correct for "spurious" entries and exits of firms. We find that on average 9 out of 100 randomly selected jobs were created within the last year, and that about 9 out of randomly selected 100 jobs will be destroyed within the next year. Hence, Austrian job flows seem to be of comparable magnitude as in other countries, similar to the well-known results of Davis et al. (1996) for the United States. Job reallocation appears to be driven primarily by idiosyncratic shocks. However, job creation increases significantly during cyclical upswings whereas job destruction rises in downturns. We also find substantial persistence of job creation and destruction. We show that the pronounced pattern of job reallocation rates falling with firm size and age continues to hold when we use a set of controls. Finally, we show that - controlling for sector and for firm size composition - Austrian job reallocation rates are only half the rates for the U. S. This result is not surprising given the impact of tighter regulation and labor law in Austria.

Keywords: Labor reallocation; job flows; labor market regulation (search for similar items in EconPapers)
JEL-codes: D21 J23 L11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ent, nep-lab, nep-mac and nep-reg
Date: 2002-07
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http://www.econ.jku.at/papers/2002/wp0205.pdf (application/pdf)

Related works:
Journal Article: Job Creation and Job Destruction in a Regulated Labor Market: The Case of Austria (2003) Downloads
Working Paper: Job Creation and Job Destruction in a Regulated Labour Market: The Case of Austria (2002) Downloads
Working Paper: Job Creation and Job Destruction in a Regulated Labor Market: The Case of Austria (2002) Downloads
Working Paper: Job Creation and Job Destruction in a Regulated Labor Market: The Case of Austria (2002) Downloads
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