Job Reallocation and Productivity Growth in a Post-Socialist Economy: Evidence from Slovenian Manufacturing
This paper studies whether job reallocation in Slovenia, a post-socialist economy, has been associated with gains in total factor productivity (TFP). We document the importance of entry and exit in job reallocation and show that TFP has increased mainly due to existing firms' increasing efficiency and through net entry of firms. Underlying aggregate TFP growth is job destruction by state firms and reallocation of employment to private firms.