Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/75023 
Year of Publication: 
2002
Series/Report no.: 
LICOS Discussion Paper No. 126
Publisher: 
Katholieke Universiteit Leuven, LICOS Centre for Transition Economics, Leuven
Abstract: 
This paper documents and analyses gross job flows and their detfirminants in Ukraine using a unique data set of more than 2200 Ukrainian firms operating in both the manufacturing and the non-manufacturing sector for the years 1998-2000. There are several important findings in the paper. Job destruction is dominating job creation in both 1999 and 2000. In connection with other evidence we infer from this that Ukraine is only at the beginning of the restructuring process. The most clear-cut result of our analysis is the strong positive effect of new private firms on net employment growth, a finding established for other transition economies as well. At the same time, we do not find differences in the employment growth of state-owned and privatised firms. Apart from ownership effects we also find, at the firm level, an inverse correlation of size and net employment growth and of size and job reallocation. Finally, we establish that strong foreign trade links force firms to shed labour more aggressively and to engage in more restructuring when trade is directed to and originating from Western economies. This disciplining function is absent when the trade flows are confined to CIS countries.
Subjects: 
Job Creation
Job Destruction
Ukraine
Private firms
Trade
JEL: 
E24
F14
J63
P23
Document Type: 
Working Paper

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