Firms, Jobs, and Employment in Moldova
Despite low open unemployment, labor market outcomes are unsatisfactory in Moldova. Employment is low and job opportunities are scarce. The author examines labor market performance in Moldova by focusing on firm dynamics. He finds that the low leve...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/03/3960010/firms-jobs-employment-moldova http://hdl.handle.net/10986/14728 |
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okr-10986-147282021-04-23T14:03:20Z Firms, Jobs, and Employment in Moldova Rutkowski, Jan JOBS JOB PROFILES EMPLOYMENT LOSS OF EMPLOYMENT LOSS OF EMPLOYMENT OPPORTUNITIES JOB CREATION JOB LOSSES CORRUPTION CORRUPTION COSTS BUSINESS ETHICS BUSINESS ENVIRONMENT DISMISSAL DOWNSIZING EMPLOYERS EMPLOYMENT EMPLOYMENT CREATION EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EMPLOYMENT TRENDS ENTERPRISE RESTRUCTURING ENTREPRENEURS ENTREPRENEURSHIP EXPANSION FIRING FIRM SIZE FIRMS HIRING JOB CREATION JOB FLOWS JOB GAINS JOB LOSSES JOBS JOINT STOCK COMPANIES LABOR MARKET LABOR TURNOVER PRODUCTIVE EMPLOYMENT REDUNDANT LABOR REDUNDANT WORKERS SALARIED EMPLOYEES SMALL FIRMS STATE OWNED ENTERPRISES TRADE UNIONS TRANSITION ECONOMIES TURNOVER UNDEREMPLOYMENT Despite low open unemployment, labor market outcomes are unsatisfactory in Moldova. Employment is low and job opportunities are scarce. The author examines labor market performance in Moldova by focusing on firm dynamics. He finds that the low level of employment in Moldova is due to the low rate of firm entry and the low rate of job creation in existing firms. Although the rate of job destruction is high, this is typical of transition economies, and is a problem only because it is not coupled with a commensurate rate of job creation. Firm exit is limited and thus is not an important factor behind job losses. The only sector of the economy that creates jobs on a net basis is that consisting of de novo private and small firms. However, in Moldova this sector is significantly smaller than in the most successful transition economies. The author argues that the primary factor behind the small size of the employment generating sector is the high cost of doing business in Moldova. These include numerous administrative barriers, intrusive and costly inspections, and associated corruption. These costs-extremely high even by regional standards-lower the expected returns to business activity and thus discourage firm formation and growth. The author hence recommends improvements in the investment climate as a primary policy aimed at increasing productive employment and lowering unemployment. Priority should be given to fostering job creation through facilitating the formation of new firms and to reducing the constraints on the expansion of existing firms. The government should avoid measures aimed at forestalling the destruction of unviable jobs and firm exit as these are not conducive to long-run productivity and employment growth. Enhancing labor market flexibility is a further priority, as currently the apparently stringent provisions of the Labor Code are not complied with and enforced. Given the unsatisfactory business environment, active labor market programs are unlikely to be effective unless carefully targeted at the most disadvantaged worker groups. 2013-08-01T16:47:37Z 2013-08-01T16:47:37Z 2004-03 http://documents.worldbank.org/curated/en/2004/03/3960010/firms-jobs-employment-moldova http://hdl.handle.net/10986/14728 English en_US Policy Research Working Paper;No.3253 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Moldova |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
JOBS JOB PROFILES EMPLOYMENT LOSS OF EMPLOYMENT LOSS OF EMPLOYMENT OPPORTUNITIES JOB CREATION JOB LOSSES CORRUPTION CORRUPTION COSTS BUSINESS ETHICS BUSINESS ENVIRONMENT DISMISSAL DOWNSIZING EMPLOYERS EMPLOYMENT EMPLOYMENT CREATION EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EMPLOYMENT TRENDS ENTERPRISE RESTRUCTURING ENTREPRENEURS ENTREPRENEURSHIP EXPANSION FIRING FIRM SIZE FIRMS HIRING JOB CREATION JOB FLOWS JOB GAINS JOB LOSSES JOBS JOINT STOCK COMPANIES LABOR MARKET LABOR TURNOVER PRODUCTIVE EMPLOYMENT REDUNDANT LABOR REDUNDANT WORKERS SALARIED EMPLOYEES SMALL FIRMS STATE OWNED ENTERPRISES TRADE UNIONS TRANSITION ECONOMIES TURNOVER UNDEREMPLOYMENT |
| spellingShingle |
JOBS JOB PROFILES EMPLOYMENT LOSS OF EMPLOYMENT LOSS OF EMPLOYMENT OPPORTUNITIES JOB CREATION JOB LOSSES CORRUPTION CORRUPTION COSTS BUSINESS ETHICS BUSINESS ENVIRONMENT DISMISSAL DOWNSIZING EMPLOYERS EMPLOYMENT EMPLOYMENT CREATION EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EMPLOYMENT TRENDS ENTERPRISE RESTRUCTURING ENTREPRENEURS ENTREPRENEURSHIP EXPANSION FIRING FIRM SIZE FIRMS HIRING JOB CREATION JOB FLOWS JOB GAINS JOB LOSSES JOBS JOINT STOCK COMPANIES LABOR MARKET LABOR TURNOVER PRODUCTIVE EMPLOYMENT REDUNDANT LABOR REDUNDANT WORKERS SALARIED EMPLOYEES SMALL FIRMS STATE OWNED ENTERPRISES TRADE UNIONS TRANSITION ECONOMIES TURNOVER UNDEREMPLOYMENT Rutkowski, Jan Firms, Jobs, and Employment in Moldova |
| geographic_facet |
Europe and Central Asia Moldova |
| relation |
Policy Research Working Paper;No.3253 |
| description |
Despite low open unemployment, labor
market outcomes are unsatisfactory in Moldova. Employment is
low and job opportunities are scarce. The author examines
labor market performance in Moldova by focusing on firm
dynamics. He finds that the low level of employment in
Moldova is due to the low rate of firm entry and the low
rate of job creation in existing firms. Although the rate of
job destruction is high, this is typical of transition
economies, and is a problem only because it is not coupled
with a commensurate rate of job creation. Firm exit is
limited and thus is not an important factor behind job
losses. The only sector of the economy that creates jobs on
a net basis is that consisting of de novo private and small
firms. However, in Moldova this sector is significantly
smaller than in the most successful transition economies.
The author argues that the primary factor behind the small
size of the employment generating sector is the high cost of
doing business in Moldova. These include numerous
administrative barriers, intrusive and costly inspections,
and associated corruption. These costs-extremely high even
by regional standards-lower the expected returns to business
activity and thus discourage firm formation and growth. The
author hence recommends improvements in the investment
climate as a primary policy aimed at increasing productive
employment and lowering unemployment. Priority should be
given to fostering job creation through facilitating the
formation of new firms and to reducing the constraints on
the expansion of existing firms. The government should avoid
measures aimed at forestalling the destruction of unviable
jobs and firm exit as these are not conducive to long-run
productivity and employment growth. Enhancing labor market
flexibility is a further priority, as currently the
apparently stringent provisions of the Labor Code are not
complied with and enforced. Given the unsatisfactory
business environment, active labor market programs are
unlikely to be effective unless carefully targeted at the
most disadvantaged worker groups. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Rutkowski, Jan |
| author_facet |
Rutkowski, Jan |
| author_sort |
Rutkowski, Jan |
| title |
Firms, Jobs, and Employment in Moldova |
| title_short |
Firms, Jobs, and Employment in Moldova |
| title_full |
Firms, Jobs, and Employment in Moldova |
| title_fullStr |
Firms, Jobs, and Employment in Moldova |
| title_full_unstemmed |
Firms, Jobs, and Employment in Moldova |
| title_sort |
firms, jobs, and employment in moldova |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/03/3960010/firms-jobs-employment-moldova http://hdl.handle.net/10986/14728 |
| _version_ |
1764430310411337728 |