Gross job flows in Russian industry before and after reforms: Has destruction become more creative?

J. David Brown, John S. Earle

    Research output: Contribution to journalArticlepeer-review

    24 Citations (Scopus)

    Abstract

    We analyze annual census data from 1985 to 1999 for old Russian manufacturing firms to calculate the magnitude, covariates, and productivity consequences of gross job flows before and after reforms. The job creation rate was low throughout the period but increased slightly after 1991, while job destruction, reallocation, excess reallocation, and employment growth dispersion rose markedly. The association of excess reallocation with firm size, wages, labor productivity, and capital intensity became clearly negative postreform. Job reallocation was unrelated to labor productivity growth under socialism, but recent contributions were strongly positive. Privatization and competition did not increase job flows, but they became associated with significantly higher covariance of employment growth with relative productivity, suggesting that they may have helped to focus job destruction in firms with the lowest productivity. J. Comp. Econ., March 2002, 30(1), pp. 96-133. Heriot-Watt University, Edinburgh, United Kingdom; Center for Economic Policy Research, London; and Center for Economic and Financial Research, Moscow; and Upjohn Institute for Employment Research, Kalamazoo, Michigan; and Central European University, Budapest, Hangary. © 2002 Elsevier Science (USA).

    Original languageEnglish
    Pages (from-to)96-133
    Number of pages38
    JournalJournal of Comparative Economics
    Volume30
    Issue number1
    DOIs
    Publication statusPublished - 2002

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