Labor reallocation and firm growth: benchmarking transition countries against mature market economies

IZA Journal of Labor & Development

Table 6 Job reallocation rate (JRR), job creation rate (JCR), job destruction rate (JDR) and job growth rate (JGR), by country group

Country group	JRR	JCR	JDR	JGR	Obs.
Developed market economies (2004/2005):
W Germany	0.138	0.060	0.078	−0.018	810
Cohesion	0.192	0.125	0.066	0.059	2,150
Transition economies (2005):
EU8	0.180	0.074	0.105	−0.031	2,946
SEE	0.224	0.088	0.137	−0.049	1,762
Mid inc CIS	0.191	0.116	0.075	0.041	2,080
Low inc CIS	0.229	0.140	0.088	0.052	1,944
Transition economies (2002):
EU8	0.173	0.071	0.102	−0.030	1,885
SEE	0.207	0.092	0.115	−0.023	1,249
Mid inc CIS	0.190	0.137	0.053	0.084	1,458
Low inc CIS	0.203	0.100	0.103	−0.003	1,285
Transition economies (1999):
EU8	0.193	0.062	0.131	−0.068	1,124
SEE	0.167	0.053	0.115	−0.062	639
Mid inc CIS	0.216	0.049	0.167	−0.118	1,039
Low inc CIS	0.221	0.033	0.187	−0.154	750

Note: Job creation rate (JCR) is defined as the sum of all employment gains in the expanding firms in the economy divided by total employment, job destruction rate (JDR) is the sum of all employment losses in the contracting firms divided by total employment, job reallocation rate (JRR) is the sum of the two (JCR+JDR) and job growth rate (JGR) is the difference between JCR and JDR.