Employment Adjustment in the Global Crisis

21 Pages Posted: 6 Sep 2016

See all articles by Almos Telegdy

Almos Telegdy

Corvinus University of Budapest; Magyar Nemzeti Bank

Date Written: October 2016


This paper analyzes the employment adjustment of domestic, foreign and state‐owned companies before and during the global crisis. Using Hungarian firm‐level data for the period between 2006 and 2012 and matching foreign and state‐owned firms to domestic enterprises by industry and employment, it finds that the net job creation rate is similar in domestic and state‐owned firms while it is larger by 3.5 percent in foreign‐owned enterprises before the crisis. Domestic and foreign‐owned firms react to the crisis in very similar fashion by dropping net job creation by about 4 percentage points. Contrary to this behaviour, state‐owned enterprises do not decrease net job creation in some, and increase it by 3.5‐6 percent in other regressions.

Keywords: Net job growth, global crisis, foreign ownership, state ownership, Hungary

Suggested Citation

Telegdy, Almos, Employment Adjustment in the Global Crisis (October 2016). Economics of Transition, Vol. 24, Issue 4, pp. 683-703, 2016, Available at SSRN: https://ssrn.com/abstract=2835189 or http://dx.doi.org/10.1111/ecot.12103

Almos Telegdy (Contact Author)

Corvinus University of Budapest ( email )


Magyar Nemzeti Bank ( email )

Szabadsag ter 8-9
Budapest, H-1850

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