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Job-to-Job Flows and the Business Cycle

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  • Henry Hyatt
  • Erika McEntarfer

Abstract

Job-to-job flows represent one of the most significant opportunities for the development of new economic statistics, having been made possible by the increased availability of matched employer-employee datasets for statistical tabulation. In this paper, we analyze a new database of job-to-job flows from 1999 to 2010 in the United States. This analysis provides definitive benchmarks on gross employment flows, origin and destination industries, nonemployment, and associated earnings. To demonstrate the usefulness of these statistics, we evaluate them in the context of the recessions of 2001 and 2007, as well as the economic expansion between the two. We find a sharp drop in job mobility in the Great Recession, much sharper than the previous recession, and higher earnings penalties for job transitions with an intervening nonemployment spell. This fall in job mobility is found within all age groups but is largest among younger workers. We also examine outcomes for displaced workers and examine labor market adjustment in several specific industries. Generally, we find higher rates of nonemployment upon job separation, increasing rates of industry change and higher earnings penalties from job change in the Great Recession.

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File URL: ftp://ftp2.census.gov/ces/wp/2012/CES-WP-12-04.pdf
File Function: First version, 2012
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Bibliographic Info

Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 12-04.

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Length: 47 pages
Date of creation: Mar 2012
Date of revision:
Handle: RePEc:cen:wpaper:12-04

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Keywords: job flows; matched employer-employee data;

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References

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  1. Maxim Poletaev & Chris Robinson, 2008. "Human Capital Specificity: Evidence from the Dictionary of Occupational Titles and Displaced Worker Surveys, 1984-2000," Journal of Labor Economics, University of Chicago Press, vol. 26(3), pages 387-420, 07.
  2. Henry Hyatt & Erika McEntarfer, 2012. "Job-to-Job Flows in the Great Recession," American Economic Review, American Economic Association, vol. 102(3), pages 580-83, May.
  3. John J. Abowd & John Haltiwanger & Julia Lane, 2004. "Integrated Longitudinal Employer-Employee Data for the United States," American Economic Review, American Economic Association, vol. 94(2), pages 224-229, May.
  4. AMOS GOLAN & JULIA LANE & ERIKA McENTARFER, 2007. "The Dynamics of Worker Reallocation within and across Industries," Economica, London School of Economics and Political Science, vol. 74(293), pages 1-20, 02.
  5. Bruce Fallick & Charles A. Fleischman, 2004. "Employer-to-employer flows in the U.S. labor market: the complete picture of gross worker flows," Finance and Economics Discussion Series 2004-34, Board of Governors of the Federal Reserve System (U.S.).
  6. Kristen Keith & Abagail McWilliams, 1999. "The Returns to mobility and job search by gender," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 52(3), pages 460-477, April.
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Cited by:
  1. Wall, Howard, 2013. "Robbing Peter to Pay Paul: The Employment Effects of the Missouri Quality Jobs Program," MPRA Paper 50605, University Library of Munich, Germany.
  2. Bulent Guler, 2013. "Dual Income Couples and Interstate Migration," 2013 Meeting Papers 898, Society for Economic Dynamics.
  3. Peter Diamond, 2013. "Cyclical Unemployment, Structural Unemployment," IMF Economic Review, Palgrave Macmillan, vol. 61(3), pages 410-455, August.
  4. 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.).
  5. Hyatt, Henry R. & Spletzer, James R., 2013. "The Recent Decline in Employment Dynamics," IZA Discussion Papers 7231, Institute for the Study of Labor (IZA).
  6. Fariha Kamal & C.J. Krizan, 2012. "Decomposing Aggregate Trade Flows: New Evidence from U.S. Traders," Working Papers 12-17, Center for Economic Studies, U.S. Census Bureau.
  7. Tomaz Cajner & Isabel Cairo, 2013. "The Fading Dynamism of the US Labor Market: The Role of Demographics," 2013 Meeting Papers 1208, Society for Economic Dynamics.

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