Firm Dynamics and Job Creation in the Former Yugoslav Republic of Macedonia
Good jobs are in short supply in the former Yugoslav Republic of Macedonia. Sustainable, better employment opportunities must come from higher labor demand from a dynamic and internationally competitive private sector, the result of an advanced eco...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/982121498623703665/Firm-dynamics-and-job-creation-in-the-former-Yugoslav-Republic-of-Macedonia http://hdl.handle.net/10986/27744 |
| Summary: | Good jobs are in short supply in the
former Yugoslav Republic of Macedonia. Sustainable, better
employment opportunities must come from higher labor demand
from a dynamic and internationally competitive private
sector, the result of an advanced economic transition from a
state controlled to a market led economy. This note focuses
on job creation from the perspective of enterprise sector
dynamics in the former Yugoslav Republic of Macedonia. The
purpose is to understand, better, the dynamics of job
creation, where and how firms and jobs are created, and the
most important constraints to job creation from the firm
perspective. Drawing on several sources of data, including
firm registry, data on entrepreneurship, labor force
surveys, and policy indicators, the note contributes to the
job diagnostics necessary to devise relevant policy to
increase job opportunities in the former Yugoslav Republic
of Macedonia and is intended to provide guidance to
researchers and policymakers in other countries wishing to
understand better the role of the private sector in
employment. Despite some significant business climate
reforms, the former Yugoslav Republic of Macedonia has not
seen private sector dynamics or ‘entrepreneurship’ improve
sufficiently. In sum, the transition of workers and jobs
from low productivity sectors to higher productivity sectors
has stalled in the former Yugoslav Republic of Macedonia.
Prior to the economic crisis, countries which had advanced
more in the transition process saw higher productivity
growth than the former Yugoslav Republic of Macedonia, more
inflows of workers into the services sector, and substantive
net job creation. In the former Yugoslav Republic of
Macedonia, in contrast, labor reallocation is still
incomplete. One fifth of the population remains in low
productivity agriculture and one third is informally
employed. Between 2007 and 2011 the formal private sector
created only 12 percent of all new jobs. |
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