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Measuring Employer-to-Employer Reallocation

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Abstract

We revisit the measurement of Employer-to-Employer (EE) transitions in the monthly Current Population Survey. We detect sharp increases in the incidence of missing answers to the relevant question starting in 2007, when the U.S. Census Bureau introduced the Respondent Identification Policy. We show evidence of non response selection by both observable and unobservable worker characteristics that correlate with EE mobility. We propose a selection model and aprocedure to impute missing answers, thus EE transitions. Our imputed EE aggregate series restores a close congruence with the business cycle after 2007, including the COVID-19 recession, and exhibits no downward trend since 2000

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  • Shigeru Fujita & Giuseppe Moscarini & Fabien Postel-Vinay, 2021. "Measuring Employer-to-Employer Reallocation," Working Papers 21-22, Federal Reserve Bank of Philadelphia.
    • Handle: RePEc:fip:fedpwp:92502
    DOI: 10.21799/frbp.wp.2021.22
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    Cited by:

    1. Monica Costa Dias & Ella Johnson-Watts & Robert Joyce & Fabien Postel-Vinay & Peter Spittal & Xiaowei Xu, 2021. "Worker Mobility and Labour Market Opportunities," Bristol Economics Discussion Papers 21/753, School of Economics, University of Bristol, UK.
    2. Christian vom Lehn & Cache Ellsworth & Zachary Kroff, 2022. "Reconciling Occupational Mobility in the Current Population Survey," Journal of Labor Economics, University of Chicago Press, vol. 40(4), pages 1005-1051.
    3. David Autor & Arindrajit Dube & Annie McGrew, 2023. "The Unexpected Compression: Competition at Work in the Low Wage Labor Market," NBER Working Papers 31010, National Bureau of Economic Research, Inc.
    4. Cynthia Doniger, 2023. "Wage Dispersion with Heterogeneous Wage Contracts," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 51, pages 138-160, December.
    5. Proebsting, Christian, 2022. "Market segmentation and spending multipliers," Journal of Monetary Economics, Elsevier, vol. 128(C), pages 1-19.
    6. Raven Molloy & Christopher L. Smith & Abigail Wozniak, 2024. "Changing Stability in U.S. Employment Relationships: A Tale of Two Tails," Journal of Human Resources, University of Wisconsin Press, vol. 59(1), pages 35-69.
    7. Cynthia L. Doniger, 2021. "The Ways the Cookie Crumbles: Education and the Margins of Cyclical Adjustment in the Labor Market," Finance and Economics Discussion Series 2021-019, Board of Governors of the Federal Reserve System (U.S.).
    8. Bertheau, Antoine & Bunzel, Henning & Vejlin, Rune Majlund, 2020. "Employment Reallocation over the Business Cycle: Evidence from Danish Data," IZA Discussion Papers 13681, Institute of Labor Economics (IZA).
    9. Consolo, Agostino & Petroulakis, Filippos, 2022. "Did COVID-19 induce a reallocation wave?," Working Paper Series 2703, European Central Bank.
    10. Simmons, Michael, 2023. "Job-to-job transitions, job finding and the ins of unemployment," Labour Economics, Elsevier, vol. 80(C).
    11. Bertheau, Antoine & Vejlin, Rune, 2022. "Employer-to-Employer Transitions and Time Aggregation Bias," Labour Economics, Elsevier, vol. 75(C).
    12. Basso, Gaetano & Depalo, Domenico & Lattanzio, Salvatore, 2023. "Worker flows and reallocation during the recovery," Labour Economics, Elsevier, vol. 83(C).
    13. Hyatt Henry & Kristin Sandusky L. & Murray Seth, 2021. "Business Income Dynamics and Labor Market Fluidity," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-51, January.

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    More about this item

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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