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Separations at the Firm Level

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Author Info
Pieter A. Gautier () (Netherlands Bureau for Economic Policy Analysis and Vrije Universiteit Amsterdam)
Gerard J. van den Berg () (Vrije Universiteit Amsterdam and CEPR)
Jan C. van Ours (CentER, Tilburg University and CEPR)
Geert Ridder () (Johns Hopkins University)

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Abstract

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 Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 99-010/3.

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Date of creation: 18 Feb 1999
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Handle: RePEc:dgr:uvatin:19990010

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This paper has been announced in the following NEP Reports: 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. van den Berg, G.J. & van der Klaauw, B., 1998. "Combining Micro and Macro Unemployment Duration Data," Papers 9858, Institut National de la Statistique et des Etudes Economiques-.
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  2. Ricardo J. Caballero & Mohamad L. Hammour, 1996. "The Macroeconomics of Specificity," NBER Working Papers 5757, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Davis, Steven J & Haltiwanger, John & Schuh, Scott, 1996. " Small Business and Job Creation: Dissecting the Myth and Reassessing the Facts," Small Business Economics, Springer, vol. 8(4), pages 297-315, August.
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  4. Baker, Michael, 1992. "Unemployment Duration: Compositional Effects and Cyclical Variability," American Economic Review, American Economic Association, vol. 82(1), pages 313-21, March. [Downloadable!] (restricted)
  5. Burgess, Simon M, 1988. "Employment Adjustment in UK Manufacturing," Economic Journal, Royal Economic Society, vol. 98(389), pages 81-103, March. [Downloadable!] (restricted)
  6. van Ours, J. C. & Ridder, G., 1995. "Job matching and job competition: Are lower educated workers at the back of job queues?," European Economic Review, Elsevier, vol. 39(9), pages 1717-1731, December. [Downloadable!] (restricted)
  7. Jaap H. Abbring & Gerard J. van den Berg & Pieter A. Gautier & A. Gijsbert C. van Lomwel & Jan C. van Ours & Christopher J. Ruhm, 1998. "Displaced Workers in the United States and the Netherlands," Tinbergen Institute Discussion Papers 98-084/3, Tinbergen Institute. [Downloadable!]
  8. Olivier Jean Blanchard & Peter Diamond, 1991. "The Cyclical Behavior of the Gross Flows of U.S. Workers," NBER Reprints 1582, National Bureau of Economic Research, Inc.
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  1. Jonathan P. Thomas, 1999. "Fair Pay and a Wagebill Arguement for Wage Rigidity and Excessive Employment Variability," Discussion Paper Series, Department of Economics 9919, Department of Economics, University of St. Andrews. [Downloadable!]
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  2. Pieter A. Gautier, 1999. "Unemployment and Search Externalities in a Model with Heterogeneous Jobs and Heterogeneous Workers," Tinbergen Institute Discussion Papers 99-075/3, Tinbergen Institute. [Downloadable!]
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