This paper analyzes the determinants of lay-offs, job-to-job movements and total separations with a unique data set that combines information on individual firms and their workers. We are in particular interested in whether the lay-off policy of firms can explain the relatively high level of unemployment amongst lower educated workers and the relatively strong sensitivity of their unemployment rate to the business cycle. We find that lay-off rates decrease with education but that the change over the cycle in the lay-off rate of workers with a lower level of education compared to that of workers with a higher level of education can not explain the stronger cyclicality of the unemployment rate for lower educated workers. We conclude that this stronger cyclicality is not due to the personnel policy of firms.
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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number
17.
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Gautier, Pieter A. & Berg, Gerard J. van den & Ours, Jan C. van, 1999.
"Separations at the firm level,"
Serie Research Memoranda
0016, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
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Find related papers by JEL classification: 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 J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
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