Job Reallocation and Productivity Growth in a Post-Socialist Economy: Evidence from Slovenian Manufacturing

Posted: 2 Oct 2007

See all articles by Jan De Loecker

Jan De Loecker

Princeton University - Department of Economics; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Jozef Konings

Catholic University of Leuven (KUL) - LICOS - Centrum voor Transitie-economie; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Abstract

This paper studies whether job reallocation in Slovenia, a post-socialist economy, has been associated with gains in total factor productivity (TFP). We document the importance of entry and exit in job reallocation and show that TFP has increased mainly due to existing firms' increasing efficiency and through net entry of firms. Underlying aggregate TFP growth is job destruction by state firms and reallocation of employment to private firms.

Keywords: Creative destruction, Total factor productivity, Reallocation

JEL Classification: L60, D21, P20

Suggested Citation

De Loecker, Jan and Konings, Jozef, Job Reallocation and Productivity Growth in a Post-Socialist Economy: Evidence from Slovenian Manufacturing. European Journal of Political Economy, Vol. 22, No. 2, 2006, Available at SSRN: https://ssrn.com/abstract=1018052

Jan De Loecker (Contact Author)

Princeton University - Department of Economics ( email )

Princeton, NJ 08544-1021
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

HOME PAGE: http://pages.stern.nyu.edu/~jdeloeck/

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Jozef Konings

Catholic University of Leuven (KUL) - LICOS - Centrum voor Transitie-economie ( email )

Waaistraat 6 - box 3511
Leuven, 3000
Belgium
+32 16 326 589 (Phone)
+32 16 326 599 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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