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Job Creation and Job Destruction in Greek Manufacturing
Author(s) -
Voulgaris Fotini,
Papadogonas Theodore,
Agiomirgianakis George
Publication year - 2005
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/j.1467-9361.2005.00277.x
Subject(s) - profitability index , job creation , debt , manufacturing sector , investment (military) , sample (material) , descriptive statistics , labour economics , economics , manufacturing , capital (architecture) , business , macroeconomics , finance , marketing , history , chemistry , statistics , mathematics , archaeology , chromatography , politics , political science , law
This paper examines job construction and destruction patterns in Greek manufacturing for the period 1995–99, just before Greece's entry to the European Monetary Union (EMU). The analysis uses descriptive statistics and regression models and is performed on a longitudinal sample of 6164 firms, classified by size of employment and by manufacturing sector. The results show the dynamic role small‐ and medium‐sized firms play in net employment creation in Greek manufacturing. High technology and capital‐intensive manufacturing sectors contribute mostly to net employment growth. Age of the firm is adversely connected to employment growth, while export activity and location of firms contribute significantly in net job creation. Significant determinants to employment growth are firm size, age, profitability, sales growth, reliance on debt and investment in new fixed assets. Economic policy measures are suggested to promote the establishment and survival of new small manufacturing firms, and the growth of the surviving ones.