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Age-specific Cyclical Effects in Job Reallocation and Labor Mobility

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  • Gielen, A. C.
  • Ours, J.C. van

    (Tilburg University, Center for Economic Research)

Abstract

We present an empirical analysis of job reallocation and labor mobility using matched worker-firm data for the Netherlands to investigate how firms adjust their workforce over the cycle.Our data cover the period 1993-2002.We find that cyclical adjustments of the workforce occur mainly through fluctuations in job creation for young and prime-age workers while for old workers they occur mainly through fluctuations in job destruction.Moreover, we find that business cycle fluctuations are used to rejuvenate the workforce. Workforce reductions are most harmful for old workers; for them the flow out of employment is a one-way street.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2005-86.

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Date of creation: 2005
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Handle: RePEc:dgr:kubcen:200586

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Web page: http://center.uvt.nl

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Keywords: job creation; job destruction; accessions; separations; matched worker-firm data;

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