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Cyclical Effects on Job-to-Job Mobility: An Aggregated Analysis on Microeconomic Data

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  • Cornelißen, Thomas
  • Hübler, Olaf
  • Schneck, Stefan

Abstract

This paper analyses cyclical effects on job-to-job mobility using German data. The focus lies on the influence of the regional unemployment rate and the regional growth of the GDP. Job-to-job transitions are fragmented into external and internal movements. The innovation is to describe mobility using background information why the moves occur because the available empirical labour market literature is in deficit with analyzing the motive why these transitions occur with respect to the business cycle. External movements can be introduced by quits or forced by layoffs, the end of the contract, or other reasons such as bankruptcy of a firm. Internal transitions are classified as promotions and transfers. Our estimates show that job-to-job mobility is strongly affected by the business cycle. External movements are more likely in times of growing GDP and less probable when the unemployment rate increases. For internal transitions our results suggest that Eastern and Western Germany's workers differ in their mobility properties along the business cycle.

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Bibliographic Info

Paper provided by Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät in its series Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät der Leibniz Universität Hannover with number dp-371.

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Length: 39 pages
Date of creation: Aug 2007
Date of revision:
Handle: RePEc:han:dpaper:dp-371

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Related research

Keywords: job-to-job mobility; internal and external moves; promotions; quits; lay-off; business cycle;

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References

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Cited by:
  1. Stüber, Heiko & Beissinger, Thomas, 2010. "Does downward nominal wage rigidity dampen wage increases?," FZID Discussion Papers 22-2010, University of Hohenheim, Center for Research on Innovation and Services (FZID).

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