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The cyclicality of job-to-job transitions and its implications for aggregate productivity

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  • Mukoyama, Toshihiko

Abstract

This paper analyzes the job-to-job transitions of workers in the United States. First, I propose a new method of correcting the time-aggregation bias. The bias correction does not significantly alter the cyclical properties of the job-to-job transition rates. The bias-corrected series from 1996 to 2011 reveals a procyclical pattern of job-to-job transitions and a large decline since the beginning of the 2000s. Second, I construct a model of on-the-job search and explore the implications of this phenomenon. The calibrated model quantifies the effect of the decline in the reallocation of workers through job-to-job transitions on total factor productivity (TFP). From 2009 to 2011, the model accounts for about 0.4–0.5% annual decline in TFP.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

Volume (Year): 39 (2014)
Issue (Month): C ()
Pages: 1-17

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Handle: RePEc:eee:dyncon:v:39:y:2014:i:c:p:1-17

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Web page: http://www.elsevier.com/locate/jedc

Related research

Keywords: Job-to-job transition; Time-aggregation bias; On-the-job search;

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References

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  1. Per Krusell & Toshihiko Mukoyama & Richard Rogerson & Ayşegül Şahin, 2012. "Is Labor Supply Important for Business Cycles?," NBER Working Papers 17779, National Bureau of Economic Research, Inc.
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Cited by:
  1. Toshihiko Mukoyama, 2013. "The cyclicality of job-to-job transitions and its implications for aggregate productivity," International Finance Discussion Papers 1074, Board of Governors of the Federal Reserve System (U.S.).

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