Worker flows and job flows: a quantitative investigation
AbstractThis paper studies the quantitative properties of a multiple-worker firm matching model with on-the-job search where heterogeneous firms operate decreasing-returns-to-scale production technology. We focus on the model's ability to replicate the business cycle features of job flows, worker flows between employment and unemployment, and job-to-job transitions. The calibrated model successfully replicates (i) countercyclical worker flows between employment and unemployment, (ii) procyclical job-to-job transitions, and (iii) opposite movements of job creation and destruction rates over the business cycle. The cyclical properties of worker flows between employment and unemployment differ from those of job flows, partly because of the presence of job-to-job transitions. We also show, however, that job flows measured by net employment changes differ significantly from total worker separation and accession rates, because separations also occur at firms with positive net employment changes, and similarly firms that are shrinking on net may hire workers to partially offset attritions. The presence of job-to-job transitions is the key to producing these differences.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Federal Reserve Bank of Philadelphia in its series Working Papers with number 13-09.
Date of creation: 2013
Date of revision:
Other versions of this item:
- Shigeru Fujita & Makoto Nakajima, 2009. "Worker flows and job flows: a quantitative investigation," Working Papers 09-33, Federal Reserve Bank of Philadelphia.
- NEP-ALL-2013-04-13 (All new papers)
- NEP-DGE-2013-04-13 (Dynamic General Equilibrium)
- NEP-LAB-2013-04-13 (Labour Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Davis, Steven J. & Faberman, R. Jason & Haltiwanger, John, 2012.
"Labor market flows in the cross section and over time,"
Journal of Monetary Economics,
Elsevier, vol. 59(1), pages 1-18.
- Steven J. Davis & Jason Faberman & John C. Haltiwanger, 2011. "Labor Market Flows in the Cross Section and Over Time," NBER Working Papers 17294, National Bureau of Economic Research, Inc.
- Leo Kaas & Philipp Kircher, 2011.
"Efficient Firm Dynamics in a Frictional Labor Market,"
CESifo Working Paper Series
3336, CESifo Group Munich.
- Philipp Kircher & Leo Kaas, 2010. "Efficient Firm Dynamics in a Frictional Labor Market," 2010 Meeting Papers 89, Society for Economic Dynamics.
- Leo Kaas & Philipp Kircher, 2011. "Efficient Firm Dynamics in a Frictional Labor Market," Working Paper Series of the Department of Economics, University of Konstanz 2011-01, Department of Economics, University of Konstanz.
- Kaas, Leo & Kircher, Philipp, 2011. "Efficient Firm Dynamics in a Frictional Labor Market," IZA Discussion Papers 5452, Institute for the Study of Labor (IZA).
- Philipp Kircher & Leo Kaas, 2013. "Efficient firm dynamics in a frictional labor market," 2013 Meeting Papers 160, Society for Economic Dynamics.
- Andrea Pescatori & Murat Tasci, 2011.
"Search Frictions and the Labor Wedge,"
KoÃ§ University-TUSIAD Economic Research Forum Working Papers
1113, Koc University-TUSIAD Economic Research Forum.
- Murat Tasci & Andrea Pescatori, 2011. "Search Frictions and the Labor Wedge," 2011 Meeting Papers 371, Society for Economic Dynamics.
- Andrea Pescatori & Murat Tasci, 2011. "Search frictions and the labor wedge," Working Paper 1111, Federal Reserve Bank of Cleveland.
- Murat Tasci & Andrea Pescatori, 2011. "Search Frictions and the Labor Wedge," IMF Working Papers 11/117, International Monetary Fund.
- Ratner, David, 2013. "Unemployment Insurance Experience Rating and Labor Market Dynamics," Finance and Economics Discussion Series 2013-86, Board of Governors of the Federal Reserve System (U.S.).
- Christopher Reicher, 2011. "Hiring chains and the dynamic behavior of job and worker flows," Kiel Working Papers 1709, Kiel Institute for the World Economy.
- Hawkins, William B. & Acemoglu, Daron, 0. "Search with multi-worker firms," Theoretical Economics, Econometric Society.
- Nicolas Roys, 2010. "Estimating Labor Market Rigidities with Heterogeneous Firms," 2010 Meeting Papers 127, Society for Economic Dynamics.
- Edouard Schaal, 2011. "Uncertainty, Productivity and Unemployment in the Great Depression," 2011 Meeting Papers 1450, Society for Economic Dynamics.
- Bachmann, Rüdiger & Bayer, Christian & Seth, Stefan & Wellschmied, Felix, 2013.
"Cyclicality of Job and Worker Flows: New Data and a New Set of Stylized Facts,"
IZA Discussion Papers
7192, Institute for the Study of Labor (IZA).
- Wellschmied, Felix Maximilian & Bachmann, Rüdiger & Bayer, Christian & Seth, Stefan, 2013. "Cyclicality of Job and Worker Flows: New Data and a New Set of Stylized Facts," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79874, Verein für Socialpolitik / German Economic Association.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Beth Paul).
If references are entirely missing, you can add them using this form.