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The Dynamics of Worker Reallocation Within and Across Industries

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Author Info
Amos Golan
Julia I. Lane
Erika McEntarfer

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Abstract

This paper uses an integrated employer-employee data set to answer two key questions: 1. What is the "equilibrium" amount of worker reallocation in the economy - both within and across industries? 2. How much does firm-level job reallocation affect the separation probabilities of workers? Consistent with other work, we find that there is a great deal of reallocation in the economy, although this varies substantially across demographic group. Much worker reallocation is within the economy, roughly evenly split between within and across broadly defined industries. An important new finding is that much of this reallocation is confined to a relatively small subset of workers that is shuffled across jobs - both within and across industries - in the economy. However, we also find that even for the most stable group of workers, firm level job reallocation substantially increases the probability of transition for even the most stable group of workers. Finally, workers who are employed in industries that provide low returns to tenure are much more likely to reallocate both within and across industries.

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File URL: http://lehd.did.census.gov/led/library/techpapers/tp-2005-02.pdf
File Format: application/pdf
File Function: First version, 2005
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Publisher Info
Paper provided by Longitudinal Employer-Household Dynamics, Center for Economic Studies, U.S. Census Bureau in its series Technical Papers with number 2005-02.

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Length: 25 pages
Date of creation: Jun 2005
Date of revision:
Handle: RePEc:cen:tpaper:2005-02

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Web page: http://lehd.did.census.gov/led/library/techpapers.html

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Related research
Keywords: Matched employer-employee data; worker reallocation; job reallocation;

Other versions of this item:

Find related papers by JEL classification:
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Lucia Foster & John C. Haltiwanger & C. J. Krizan, 2001. "Aggregate Productivity Growth. Lessons from Microeconomic Evidence," NBER Chapters, in: New Developments in Productivity Analysis, pages 303-372 National Bureau of Economic Research, Inc. [Downloadable!]
    Other versions:
  2. Barbara Petrongolo & Christopher A. Pissarides, 2001. "Looking into the Black Box: A Survey of the Matching Function," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 390-431, June. [Downloadable!] (restricted)
    Other versions:
  3. John M. Abowd & Paul A. Lengermann & Kevin L. McKinney, 2002. "The Measurement of Human Capital in the U.S. Economy," Technical Papers 2002-09, Longitudinal Employer-Household Dynamics, Center for Economic Studies, U.S. Census Bureau, revised Mar 2003. [Downloadable!]
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Melissa Bjelland & Bruce Fallick & John Haltiwanger & Erika McEntarfer, 2007. "Employer-to-employer flows in the United States: estimates using linked employer-employee data," Finance and Economics Discussion Series 2007-30, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
    Other versions:
  2. Bachmann, Ronald & Burda, Michael C., 2008. "Sectoral Transformation, Turbulence, and Labor Market Dynamics in Germany," IZA Discussion Papers 3324, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Böckerman, Petri & Ilmakunnas, Pekka & Johansson , Edvard, 2009. "Creative destruction and employee well-being," MPRA Paper 15447, University Library of Munich, Germany. [Downloadable!]
  4. Mika Maliranta & Tuomo Nikulainen, 2008. "Labour Force Paths as Industry Linkages: A Perspective on Clusters and Industry Life Cycles," Discussion Papers 1168, The Research Institute of the Finnish Economy. [Downloadable!]
Statistics
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This page was last updated on 2009-11-22.


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