Title: New firms entry, labor reallocation, and institutions in transition economies
Abstract: prosEntry of new firms boosts productivity growth in the transition from a command to a market economy.Reallocation of market share from non-productive incumbents to dynamic new private firms may reduce employment in the short term but increases welfare in the longer term.Sound labor market institutions enable job creation by new private firms and job destruction in stateowned enterprises.By spurring employment in the medium to long term, property rights protection and rule of law enforcement encourage the entrance and survival of more firms and the creation of more jobs.