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Understanding The Contributions Of Reallocation To Productivity Growth: Lessons From A Comparative Firm-Level Analysis, J. David Brown, John S. Earle
Understanding The Contributions Of Reallocation To Productivity Growth: Lessons From A Comparative Firm-Level Analysis, J. David Brown, John S. Earle
Upjohn Institute Working Papers
We analyze comprehensive manufacturing firm data to measure the contribution of interfirm employment reallocation to aggregate productivity growth during the socialist and reform periods in six transition economies. Modifying a standard decomposition technique to better reflect the role of firm entry, we find that reallocation rates and productivity contributions are very low under socialism, but they rise dramatically after reforms, and productivity contributions greatly exceed those observed in market economies. Early in transition, more reform is associated with larger contributions from reallocation, but later, and on average over the whole transition, this relationship is reversed. Though reallocation rates are larger …
Does Privatization Hurt Workers? Lessons From Comprehensive Manufacturing Firm Panel Data In Hungary, Romania, Russia, And Ukraine, J. David Brown, John S. Earle, Álmos Telegdy
Does Privatization Hurt Workers? Lessons From Comprehensive Manufacturing Firm Panel Data In Hungary, Romania, Russia, And Ukraine, J. David Brown, John S. Earle, Álmos Telegdy
Upjohn Institute Working Papers
We estimate the effects of privatization on firm-level wages and employment in four transition economies. Applied to longitudinal data on manufacturing firms, our fixed effect and random trend models consistently fail to support workers' fears of job losses from privatization, and they never imply large negative effects on wages; only for domestic privatization in Hungary and Russia are small (3-5%) negative wage effects found. Privatization to foreign investors has positive estimated impacts on both employment and wages in all four countries. The negligible consequences of domestic privatization for workers result from effects on scale, productivity, and costs that are large …
The Productivity Effects Of Privatization: Longitudinal Estimates From Hungary, Romania, Russia, And Ukraine, J. David Brown, John S. Earle, Álmos Telegdy
The Productivity Effects Of Privatization: Longitudinal Estimates From Hungary, Romania, Russia, And Ukraine, J. David Brown, John S. Earle, Álmos Telegdy
Upjohn Institute Working Papers
This paper estimates the effect of privatization on multifactor productivity (MFP) using long panel data for nearly the universe of initially state-owned manufacturing firms in four economies. We exploit the key longitudinal feature of our data to measure and control for pre-privatization selection bias and to estimate long-run impacts. We find that the magnitudes of our estimates are robust to alternative functional forms, but sensitive to how we control for selection. Our preferred random growth models imply that majority privatization raises MFP about 15% in Romania, 8% in Hungary, and 2% in Ukraine, while in Russia it lowers it 3%. …
Economic Reforms And Productivity-Enhancing Reallocation In The Post-Soviet Transition, J. David Brown, John S. Earle
Economic Reforms And Productivity-Enhancing Reallocation In The Post-Soviet Transition, J. David Brown, John S. Earle
Upjohn Institute Working Papers
How do economic reforms affect resource reallocation processes and their contributions to productivity growth? This paper studies the consequences of enterprise privatization and liberalization of product markets, labour markets, and imports in the former Soviet Republics of Russia and Ukraine. Analyzing interfirm reallocation of output, labour, capital, and an input index with annual industrial census data from 1985 to 2001, we find that Soviet Russia displayed low reallocation rates that bore little relationship to relative labour and multifactor productivity across firms. Since reforms began, resource flows have increased in both countries, and their contributions to aggregate productivity growth have become …
Job Reallocation And Productivity Growth Under Alternative Economic Systems And Policies: Evidence From The Soviet Transition, J. David Brown, John S. Earle
Job Reallocation And Productivity Growth Under Alternative Economic Systems And Policies: Evidence From The Soviet Transition, J. David Brown, John S. Earle
Upjohn Institute Working Papers
How do economic policies and institutions affect job reallocation processes and their consequences for productivity growth? This paper studies the extreme case of economic system change and alternative transitional policies in the former Soviet Republics of Russia and Ukraine. Exploiting annual industrial census data from 1985 to 2000, we find that Soviet Russia displayed job flow behavior quite different from market economies, with very low rates of job reallocation that bore little relationship to relative productivity across firms and sectors. Since liberalization began, the pace, heterogeneity, and productivity effects of job flows have increased substantially. The increases occurred more quickly …