published as 'Job reallocation and productivity growth in a post-socialist economy: Evidence from Slovenian manufacturing' in: European Journal of Political Economy, 2006, 22 (2), 388-408
In most transition countries the aggregate level evidence suggests that most industries are
just destroying jobs, due to the legacy of communism where over-manning levels of
employment were the norm. This paper sheds light on whether the transition process in
Slovenian manufacturing has been one of just destruction or in contrast one of creative
destruction. To this end we start by documenting gross job flows for the Slovenian
manufacturing sector between 1994 and 2000. In contrast to slowly reforming transition
economies where the transition process in manufacturing is characterized by little job
creation and high job destruction, we find for Slovenian manufacturing a process of both
substantial job creation and destruction. This indicates that restructuring in Slovenia involves
a substantial reallocation process. We find higher job reallocation in private and small firms
where the contribution of entry and exit to the job reallocation process is higher. We further
use the Olley-Pakes methodology to estimate total factor productivity (TFP) and show that
TFP has increased in most sectors. We find that this is mainly driven by existing firms
becoming more efficient and by the net entry process, i.e. more efficient firms enter the
industry.
We use cookies to provide you with an optimal website experience. This includes cookies that are necessary for the operation of the site as well as cookies that are only used for anonymous statistical purposes, for comfort settings or to display personalized content. You can decide for yourself which categories you want to allow. Please note that based on your settings, you may not be able to use all of the site's functions.
Cookie settings
These necessary cookies are required to activate the core functionality of the website. An opt-out from these technologies is not available.
In order to further improve our offer and our website, we collect anonymous data for statistics and analyses. With the help of these cookies we can, for example, determine the number of visitors and the effect of certain pages on our website and optimize our content.