The Causes and Consequences of Sector-Level Job Flows in Poland

We look at the determinants and consequences of job reallocation in the 22 2-digit sectors of the manufacturing industry in Poland over the period 1995-99. We find that import competition and a competitive market structure (weak concentration) have a positive and significant effect on job reallocation. Moreover, higher job reallocation is associated with higher labour productivity growth in some specifications. This confirms implications from neo-Schumpeterian growth models: one channel through which competition might positively affect growth is through the reallocation of scarce resources from declining firms to rising ones