Job Creation, Job Destruction and Labour Demand in Slovenia

Abstract

This paper uses firm level data of traditional and newly established private enterprises to investigate gross job flows and labour demand in the transition period in Slovenia. We find that job destruction dominates job creation in the early years of transition, but later in the transition job destruction diminishes. The excess job reallocation rate, a measure for restructuring, is found to be rather low. In addition, we compare the results with similar studies for Romania, Bulgaria and Hungary and find that the gross job flows in Slovenia are similar to those of Hungary, yet the job destruction rate is in general lower.