Job creation and job destruction in Estonia: labour reallocation and structural changes

Jaan Masso (), Raul Eamets and Kaia Philips

No 39, UCL SSEES Economics and Business working paper series from UCL School of Slavonic and East European Studies (SSEES)

Abstract: This paper documents and analyses gross job flows and their determinants in Estonia over the years 1995-2001, using a unique database from the Estonian Business Registry. This database contains all (including also micro and small firms) officially registered firms in Estonia, the total number being almost 52,000. There are several important findings in the paper. Our results show that job flows (job creation and job destruction rates) have been extremely high in Estonia and are comparable to the levels documented for the US. These rates have not decreased recently, although worker flows (transitions between labour market states) have dropped. We also found that the firm-specific component in job flows excess of employment change had relatively lower importance than in western studies due to the emergence of small and medium-sized enterprises and labour reallocation between the economic sectors. The high inter-sectoral mobility has helped maintain high levels of job flows, while both are high also due to a favourable institutional environment, especially due to low start-up costs and a large share of micro enterprises.

Keywords: job creation; job destruction; labour reallocation; Estonia (search for similar items in EconPapers)
Pages: 40 pages
Date: 2004-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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http://discovery.ucl.ac.uk/17537/1/17537.pdf (application/pdf)

Related works:
Working Paper: Job Creation and Job Destruction in Estonia: Labour Reallocation and Structural Changes (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:see:wpaper:39

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