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.
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