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High Performing Firms in Turkey : Jobs and Productivity (English)

High-performing firms (HPFs) are those with rapid growth potential and are early movers with respect to the recognition and realization of sector-specific growth opportunities. HPFs are at the core of Turkey’s net job creation. Knowing what firms create the most jobs and/or are the most productive can help policymakers make better use of resources, especially in periods that require tight fiscal discipline. This paper uses administrative data to identify which subsectors (and firms) are most productive and/or most likely to create jobs. It uses eighteen different definitions covering the various employment or value-added outcomes. It also considers the dimension of job quality by assessing whether HPFs also offer jobs with good working conditions (such as social security coverage, permanent contract) to workers. Results show that HPFs in terms of value added (labeled V-HPF) or employment (L-HPF) have similar patterns. They create many of the new jobs in the economy, especially L-HPFs, and contribute to economic dynamism and growth. But there is a lot of churning, and even though HPFs create more net jobs than non-HPFs, they also contribute to job destruction as part of their growth process. The presence of HPFs in a sector is a predictor of subsequent growth. Thus, there is need to pursue policies that provide effective supportive measures to enable HPFs to sustain their successful performance.

Details

  • Author

    Acar Erdogan,Aysenur, Aterido,Reyes, Del Carpio,Ximena Vanessa, Cinar,Elif, Ustun,Oguzhan

  • Document Date

    2020/06/01

  • Document Type

    Report

  • Report Number

    150381

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Türkiye,

  • Region

    Europe and Central Asia,

  • Disclosure Date

    2020/06/30

  • Disclosure Status

    Disclosed

  • Doc Name

    High Performing Firms in Turkey : Jobs and Productivity

  • Keywords

    employment creation; paper and paper products; producing good; put pressure; total factor productivity; small and medium enterprise; net job creation; value added; term of productivity; use of resources; rate of growth; machinery and equipment; human resource practice; determinants of growth; level of performance; sources of innovation; change in employment; number of jobs; difference in outcomes; level of employment; quality of job; labor force survey; safe work environment; flexible work arrangement; access to capital; quality of outputs; labor market pressures; social security coverage; decline in productivity; amount of investment; new job; Job Quality; productivity growth; job destruction; employment growth; air transport; administrative datum; computer programming; formal economy; sectoral growth; increase productivity; firm exit; high performance; working condition; land transport; subsequent growth; manufacturing sector; formal sector; recent years; regression analysis; productivity level; university graduate; firm size; wage premium; firm level; regression results; income statement; firm growth; business cycle; demand shock; selection criterion; civil engineering; firm dynamic; labor productivity; labor demand; health activities; chemical product; common feature; firm performance; metal product; input market; food product; fiscal discipline; productive investment; positive spillover; competitive edge; reallocating resource; productive worker; information service; census data; wage increase; hazardous condition; firing cost; wage growth; low wage; permanent worker; internal dynamic; job flow; short period; firm owner; measure of use; section show; minimum wage; production process; productivity differences; positive correlation; tobacco product; static efficiency; dynamic efficiency; firm productivity; regression model; Informal Jobs; productivity change; investigation activity; job generation; employment outcome; transport equipment; quality employment; plastic products; residential care; time t; fixed effect; limited contribution; negative coefficient; performance outcome; increasing incidence; low unemployment; contract offer; temporary worker; high probability; high share; role models; Employment Change; base year; temporary contract; data limitation; gross output; high wage; output market; statistical agency; regular monitoring; cross reference; result year; geographic distribution; sales growth; banking sector; medium levels; new entrant; Higher Education; encouraging innovation; new investment; domestic trade; government system; business leadership; rigorous analysis; firm sale; employment size; labor outcomes; macroeconomic condition; cross-country comparison; relative supply; good performance; employment threshold; young population; micro firms; low-productivity agriculture; Population Growth

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Citation

Acar Erdogan,Aysenur Aterido,Reyes Del Carpio,Ximena Vanessa Cinar,Elif Ustun,Oguzhan

High Performing Firms in Turkey : Jobs and Productivity (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/721221593551184301/High-Performing-Firms-in-Turkey-Jobs-and-Productivity