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The Reallocation of Labour and the Lifecycle of Firms

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  • Burgess, Simon
  • Lane, Julia
  • Stevens, David

Abstract

This paper uses a unique US panel dataset of firms and workers to investigate the relationship between the firm's lifecycle and the reallocation of labour. We distinguish labour reallocation associated with job reallocation, and reallocation of workers over a fixed configuration of jobs. We find that firms at the beginning and end of their lifecycles contribute disproportionately to labour market flows, with sorting between firms particularly important among young firms, whereas sorting within firms is more important among mature firms. We also find that high churning flows are associated with a lower probability of a young firm surviving. Copyright 2000 by Blackwell Publishing Ltd

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Bibliographic Info

Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.

Volume (Year): 62 (2000)
Issue (Month): 0 (Special Issue Dec.)
Pages: 885-907

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Handle: RePEc:bla:obuest:v:62:y:2000:i:0:p:885-907

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Cited by:
  1. Pekka Ilmakunnas & Mika Maliranta, 2005. "Worker inflow, outflow, and churning," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 37(10), pages 1115-1133.
  2. Ricardo Mamede, 2009. "Toward an integrated approach to industry dynamics and labor mobility," Industrial and Corporate Change, Oxford University Press, vol. 18(1), pages 139-163, February.
  3. Wolter Hassink & Lourens Broersma, 2003. "Quits, layoffs, and job destruction," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 35(18), pages 1911-1914.
  4. Frosch, Katharina & Göbel, Christian & Zwick, Thomas, 2011. "Separating wheat and chaff: age-specific staffing strategies and innovative performance at the firm level," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 11-047, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Eugenio P. Pinto, 2009. "Firms' relative sensitivity to aggregate shocks and the dynamics of gross job flows," Finance and Economics Discussion Series, Board of Governors of the Federal Reserve System (U.S.) 2009-02, Board of Governors of the Federal Reserve System (U.S.).
  6. Kevin McKinney & Lars Vilhuber, 2006. "Using linked employer-employee data to investigate the speed of adjustments in downsizing firms," Longitudinal Employer-Household Dynamics Technical Papers, Center for Economic Studies, U.S. Census Bureau 2006-03, Center for Economic Studies, U.S. Census Bureau.

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