Job Creation and Job Destruction in Newly Established, Privatized, and State-Owned Enterprises in CIS countries

Abstract

The article describes newly created private firms are those that have been private since they were established, i.e. the enterprises, which were established after the transition process started. In the economic literature, they are also referred as de novo enterprises or firms. The paper reports new and unique firm level survey evidence to investigate the micro economic nature of the growth process and structural change in CIS countries. In particular, we investigate gross job creation and destruction in newly established private (de novo) firms and “traditional” ones, being state owned and privatized firms and find that the de novo private firms are the most dynamic ones in terms of job creation. As result of the research we find that state owned enterprises are not significantly different in their employment behavior from privatized firms, where mixed effects of competition on employment growth. Therefore, the result could be evidence that suggests efficiency wage payments are important for employment growth in couple of CIS countries.