Presentation from WIEM 2015

1. Labour reallocation over the business cycle
during transition and post-transition period:
the case of Poland
Stanisław Cichocki
Warsaw International Economic Meeting, 03.07.2015
Group for Research in Applied Economics

2. Outline
1. Motivation
2. Literature review
3. Data and method
4. Results
5. Conclusions
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3. Motivation
• Two feautres of labour reallocation during transition:
• Public vs. private sector
• Manufacturing vs. services
• Significant amount of literature for EE and FSU countries but…
• Focuses on early transition period
• Uses yearly data only
• No behavior over the business cyclebusiness cycle
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4. Literature review
• Theoretical background:
• Aghion and Blanchard (1994)
• Caballero and Hammour (1996, 1998, 2000)
• Empirical studies:
• Multiple countries studies (Bilsen and Konings, 1998; Faggio and
Konings, 2003);
• Single country studies (Haltiwanger and Vodopivec, 2002; De
Loecker and Konings 2006)
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5. Literature review
• Main results:
• High job destruction rates in state owned enterprises and
privatized firms
• High job creation rates in de novo created firms in private sector
• Job destruction high in manufacturing, job creation high in services
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6. Data and method
• LFS for period: 1995q1-2012q4
• Types flows
• Flows from public to private sector (AB)
• Flows from manufacturing to service sector (CH)
• Flows from manufacturing in public sector to services in private
sector (ABCH)
• Youth employment entry
• Elderly employment exit
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7. Results: service sector
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8. Results: manufacturing sector
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9. Results: public sector
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10. Results: AB, CH and ABCH flows
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11. Results: Youth entry and elderly exit
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12. Results: Services – cyclical patterns
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13. Results: Manufacturing– cyclical patterns
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14. Results: Public sector – cyclical patterns
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15. Results: AB – cyclical patterns
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16. Results: CH – cyclical patterns
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17. Results: ABCH – cyclical patterns
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18. Results: Youth – cyclical patterns
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19. Results: Elderly– cyclical patterns
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20. Conclusions
• Two features of labour reallocation in EE and FSU countries
• Job created in service sector, destructed in public sector
• Gross flows in service and manufacturing sector procyclical,
weak link between business cycle and public sector
employment
• CH flows procyclical
• Weak link between business cycle and AB, ABCH flows
• Youth employment entry and elderly employment exit
procyclical
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21. Thank you for your attention!
Author: Stanisław Cichocki
e-mail: scichocki@wne.uw.edu.pl
More about our research on
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