Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/21285 
Year of Publication: 
2002
Series/Report no.: 
IZA Discussion Papers No. 601
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
This paper uses individual-level data to characterize economy-wide job creation and destruction during periods of massive structural adjustment. We contrast the gradualist Czech and the rapid Estonian approach to the destruction of the communist economy to provide evidence on selected macroeconomic theories of reallocation with frictions. We find that gradualism (slowing down job destruction) effectively synchronizes job creation and destruction. Drastic job destruction leads to little or no slowdown of job creation. Small newly established firms are the under-researched fountainhead of jobs during the transition from communist to market oriented economies.
Subjects: 
job creation
job destruction
transition
JEL: 
E0
J2
O1
O4
P2
Document Type: 
Working Paper

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