IDEAS home Printed from https://ideas.repec.org/h/ibg/chaptr/msc-20.html
   My bibliography  Save this book chapter

Job Creation and Emplozment in a Time of Crisis

In: Managing Structural Changes - Trends and Requirements

Author

Listed:
  • Kosovka Ognjenovic

    (Institute of Economic Sciences)

  • Aleksandra Brankovic

    (Institute of Economic Sciences)

Abstract

Serbian economy has been severely affected by the latest global economic crisis. After salient slowdown in the last quarter of 2008, the national economy went into recession that was followed by gradual reductions in GDP and employment, transient fall in the rate of inflation and sustained rise in unemployment. Despite the fact that the corporate sector has even slightly enlarged during the observed period, it is evident that this sector has experienced significant contractions too. These contractions are evident due to permanent decline in firm size, owing to the negative employment growth, and due to deterioration in key business performance indicators. The dynamic of the growing number of enterprises was driven by micro and to some extent by small firms, which have narrow potentials for further growth of employment without significant enlargement of the number of enterprises. The Serbian economy is a vulnerable transition economy that strongly reacts to shocks. In regular conditions, before the global economic crisis, expansion of the corporate sector was not sufficient to absorb majority of workers. Following the background facts, in this chapter we have examined potentials for job creation and destruction by size of enterprises and main sectors of economic activity. For this purpose we have used the nationally representative survey of firm-level data collected during May 2011. We have found that Serbian economy creates 7.6% of new jobs per year. Almost the same percentage of jobs has been destroyed, meaning that job destruction in contracting firms contributes in almost the same proportion to the excess job reallocation as creation of new jobs in expanding firms.

Suggested Citation

  • Kosovka Ognjenovic & Aleksandra Brankovic, 2012. "Job Creation and Emplozment in a Time of Crisis," Book Chapters, in: João Sousa Andrade & Marta C. N. Simões & Ivan Stosic & Dejan Eric & Hasan Hanic (ed.), Managing Structural Changes - Trends and Requirements, edition 1, volume 1, chapter 20, pages 375-396, Institute of Economic Sciences.
  • Handle: RePEc:ibg:chaptr:msc-20
    as

    Download full text from publisher

    File URL: http://www.ien.bg.ac.rs/images/stories/download/managestr_ch20.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mortensen, Dale & Pissarides, Christopher, 2011. "Job Creation and Job Destruction in the Theory of Unemployment," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 1-19.
    2. Štěpán Jurajda & Katherine Terrell, 2003. "Job growth in early transition: Comparing two paths," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(2), pages 291-320, June.
    3. Lehmann, Hartmut & Philips, Kaia & Wadsworth, Jonathan, 2005. "The incidence and cost of job loss in a transition economy: displaced workers in Estonia, 1989 to 1999," Journal of Comparative Economics, Elsevier, vol. 33(1), pages 59-87, March.
    4. Maja Micevska, 2008. "The Labour Market in Macedonia: A Labour Demand Analysis," LABOUR, CEIS, vol. 22(2), pages 345-368, June.
    5. Boris Vujcic, 1998. "Structural Changes in Employment in Croatia," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 1(2), pages 107-125, November.
    6. Jan J. Rutkowski & Stefano Scarpetta, 2005. "Enhancing Job Opportunities : Eastern Europe and the Former Soviet Union," World Bank Publications - Books, The World Bank Group, number 7408.
    7. repec:bla:etrans:v:11:y:2003-06:i:2:p:291-320 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jurajda, Stepán & Terrell, Katherine, 2008. "Job Reallocation in Two Cases of Massive Adjustment in Eastern Europe," World Development, Elsevier, vol. 36(11), pages 2144-2169, November.
    2. Brixiova, Zuzana & Li, Wenli & Yousef, Tarik, 2009. "Skill shortages and labor market outcomes in Central Europe," Economic Systems, Elsevier, vol. 33(1), pages 45-59, March.
    3. Elsby, Michael W.L. & Hobijn, Bart & Şahin, Ayşegül, 2015. "On the importance of the participation margin for labor market fluctuations," Journal of Monetary Economics, Elsevier, vol. 72(C), pages 64-82.
    4. Jochen Mankart & Rigas Oikonomou, 2017. "Household Search and the Aggregate Labour Market," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 84(4), pages 1735-1788.
    5. Elhanan Helpman, 2010. "Labor Market Frictions as a Source of Comparative Advantage, with Implications for Unemployment and Inequality," NBER Working Papers 15764, National Bureau of Economic Research, Inc.
    6. Isabel Cairó & Shigeru Fujita & Camilo Morales-Jimenez, 2020. "The Cyclicality of Labor Force Participation Flows: The Role of Labor Supply Elasticities and Wage Rigidity," Working Papers 20-23, Federal Reserve Bank of Philadelphia.
    7. Krause, M.U., 2002. "Inter-Industry Wage Differentials and Job Flows," Discussion Paper 2002-3, Tilburg University, Center for Economic Research.
    8. Marcelo Veracierto, 2007. "Establishments dynamics and matching frictions in classical competitive equilibrium," Working Paper Series WP-07-16, Federal Reserve Bank of Chicago.
    9. Konon, Alexander & Fritsch, Michael & Kritikos, Alexander S., 2018. "Business cycles and start-ups across industries: An empirical analysis of German regions," Journal of Business Venturing, Elsevier, vol. 33(6), pages 742-761.
    10. Idriss Fontaine, 2021. "Uncertainty and Labour Force Participation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(2), pages 437-471, April.
    11. Claudio Michelacci & Hernán Ruffo, 2015. "Optimal Life Cycle Unemployment Insurance," American Economic Review, American Economic Association, vol. 105(2), pages 816-859, February.
    12. Brown, Alessio J.G. & Merkl, Christian & Snower, Dennis J., 2011. "Comparing the effectiveness of employment subsidies," Labour Economics, Elsevier, vol. 18(2), pages 168-179, April.
    13. Nobuhiro Kiyotaki & Ricardo Lagos, 2007. "A Model of Job and Worker Flows," Journal of Political Economy, University of Chicago Press, vol. 115(5), pages 770-819, October.
    14. Dale T. Mortensen & Christopher A. Pissarides, 1995. "Technological Progress," CEP Discussion Papers dp0264, Centre for Economic Performance, LSE.
    15. Galiani, Sebastian & Lamarche, Carlos & Porto, Alberto & Sosa-Escudero, Walter, 2005. "Persistence and regional disparities in unemployment (Argentina 1980-1997)," Regional Science and Urban Economics, Elsevier, vol. 35(4), pages 375-394, July.
    16. Martin Beraja, 2017. "Counterfactual Equivalence in Macroeconomics," 2017 Meeting Papers 1400, Society for Economic Dynamics.
    17. Michaela Fuchs & Antje Weyh, 2010. "The determinants of job creation and destruction: plant-level evidence for Eastern and Western Germany," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 37(4), pages 425-444, November.
    18. Valeriy Chereshnev & Aleksandra Vasilyeva, 2013. "Model complex of forecasting of interdependent development of migration processes and region labour market," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(3), pages 272-281.
    19. Jose Garcia-Louzao & Linas Tarasonis, 2023. "Productivity-enhancing reallocation during the Great Recession: evidence from Lithuania," Oxford Economic Papers, Oxford University Press, vol. 75(3), pages 729-749.
    20. Shigeru Fujita, 2011. "Dynamics of worker flows and vacancies: evidence from the sign restriction approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 26(1), pages 89-121, January/F.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibg:chaptr:msc-20. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Zorica Bozic (email available below). General contact details of provider: https://edirc.repec.org/data/ienbgyu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.