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Permanent and Temporary Labour: Job and Worker Flows in Sweden, 1989-1998

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Author Info

  • Arai, Mahmood

    (National Institute of Economic Research)

  • Heyman, Fredrik

    (National Institute of Economic Research)

Abstract

We use direct information on quarterly establishment-level hires and separations, as well as employee stocks to analyse the dynamics of permanent and temporary contracts. Job and worker flow rates for temporary contracts, indicating that previous results based on all types of contracts are dominated by the high turnover of temporary employment. Our results indicate that job destruction varies more than job creation in shrinking manufacturing industries while we observe the contrary for the services. Job reallocation is counter-cyclical only for permanent contracts in manufacturing, implying substantial heterogeneity in job turnover across industries and contract types.

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File URL: http://www.konj.se/download/18.70c52033121865b1398800093074/WP_71.pdf
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Bibliographic Info

Paper provided by National Institute of Economic Research in its series Working Paper with number 71.

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Length: 38 pages
Date of creation: 01 Feb 2000
Date of revision:
Handle: RePEc:hhs:nierwp:0071

Contact details of provider:
Postal: National Institute of Economic Research, P.O. Box 3116, SE-103 62 Stockholm, Sweden
Phone: 46-(0)8-453 59 00
Fax: 46-(0)8-453 59 80
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Web page: http://www.konj.se/
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Related research

Keywords: Job creation and Job dustruction; Worker Flows; Dual Labour Markets;

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References

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  1. Davis, Steven J & Haltiwanger, John C, 1992. "Gross Job Creation, Gross Job Destruction, and Employment Reallocation," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 819-63, August.
  2. Boeri, Tito, 1996. "Is Job Turnover Countercyclical?," Journal of Labor Economics, University of Chicago Press, vol. 14(4), pages 603-25, October.
  3. Abowd, John M & Corbel, Patrick & Kramarz, Francis, 1997. "The Entry and Exit of Workers and the Growth of Employment: An Analysis of French Establishments," CEPR Discussion Papers 1765, C.E.P.R. Discussion Papers.
  4. Bertola, Giuseppe & Rogerson, Richard, 1997. "Institutions and labor reallocation," European Economic Review, Elsevier, vol. 41(6), pages 1147-1171, June.
  5. Burda, Michael & Wyplosz, Charles, 1994. "Gross worker and job flows in Europe," European Economic Review, Elsevier, vol. 38(6), pages 1287-1315, June.
  6. Steven J. Davis & John Haltiwanger, 1990. "Gross Job Creation and Destruction: Microeconomic Evidence and Macroeconomic Implications," NBER Chapters, in: NBER Macroeconomics Annual 1990, Volume 5, pages 123-186 National Bureau of Economic Research, Inc.
  7. Prakash Loungani & Bharat Trehan, 1997. "Job creation and destruction," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue may2.
  8. John Haltiwanger & Steven J. Davis, 1999. "On the Driving Forces behind Cyclical Movements in Employment and Job Reallocation," American Economic Review, American Economic Association, vol. 89(5), pages 1234-1258, December.
  9. Lane, Julia & Stevens, David & Burgess, Simon, 1996. "Worker and job flows," Economics Letters, Elsevier, vol. 51(1), pages 109-113, April.
  10. Hopenhayn, Hugo A, 1992. "Entry, Exit, and Firm Dynamics in Long Run Equilibrium," Econometrica, Econometric Society, vol. 60(5), pages 1127-50, September.
  11. Christopher L. Foote, 1998. "Trend Employment Growth and the Bunching of Job Creation and Destruction," Harvard Institute of Economic Research Working Papers 1818, Harvard - Institute of Economic Research.
  12. Dunne, Timothy & Roberts, Mark J & Samuelson, Larry, 1989. "Plant Turnover and Gross Employment Flows in the U.S. Manufacturing Sector," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 48-71, January.
  13. Alonso-Borrego, Cesar, 1998. "Demand for labour inputs and adjustment costs: evidence from Spanish manufacturing firms," Labour Economics, Elsevier, vol. 5(4), pages 475-497, December.
  14. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, December.
  15. Ricardo J. Caballero & Mohamad L. Hammour, 1991. "The Cleansing Effect of Recessions," NBER Working Papers 3922, National Bureau of Economic Research, Inc.
  16. Dale T. Mortensen & Christopher A. Pissarides, 1993. "Job Creation and Job Destruction in the Theory of Unemployment," CEP Discussion Papers dp0110, Centre for Economic Performance, LSE.
  17. Hamermesh, D.S. & Hassink, W.H.J. & Ours, J.C. van, 1996. "Job turnover and labor turnover: A taxonomy of employment dynamics," Open Access publications from Tilburg University urn:nbn:nl:ui:12-86873, Tilburg University.
  18. Caballero, Ricardo J & Hammour, Mohamad L, 1996. "On the Timing and Efficiency of Creative Destruction," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 805-52, August.
  19. Cabrales, Antonio & Hopenhayn, Hugo A., 1997. "Labor-market flexibility and aggregate employment volatility," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 46(1), pages 189-228, June.
  20. Mortensen, Dale T., 1994. "The cyclical behavior of job and worker flows," Journal of Economic Dynamics and Control, Elsevier, vol. 18(6), pages 1121-1142, November.
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Citations

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Cited by:
  1. Marcus Mossfeldt & Par Osterholm, 2011. "The persistent labour-market effects of the financial crisis," Applied Economics Letters, Taylor & Francis Journals, vol. 18(7), pages 637-642.
  2. Forslund, Johanna & Samakovlis, Eva & Vredin Johansson, Maria, 2006. "Matters Risk? The Allocation of Government Subsidies for Remediation of Contaminated Sites under the Local Investment Programme," Working Paper 94, National Institute of Economic Research.
  3. Östblom, Göran & Ljunggren Söderman, Maria & Sjöström, Magnus, 2010. "Analysing future solid waste generation - Soft linking a model of waste management with a CGE-model for Sweden," Working Paper 118, National Institute of Economic Research.
  4. Boman, Mattias & Huhtala, Anni & Nilsson, Charlotte & Alroth, Sofia & Bostedt, Göran & Mattssson, Leif & Gong, Peichen, 2003. "Applying the Contingent Valuation Method in Resource Accounting: A Bold Proposal," Working Paper 85, National Institute of Economic Research.
  5. Vartiainen, Juhana, 2010. "Interpreting Wage Bargaining Norms," Working Paper 116, National Institute of Economic Research.
  6. Gren, Ing-Marie, 2003. "Monetary Green Accounting and Ecosystem Services," Working Paper 86, National Institute of Economic Research.
  7. Lindström, Tomas, 2003. "The Role of High-Tech Capital Formation for Swedish Productivity Growth," Working Paper 83, National Institute of Economic Research.
  8. Piekkola, Hannu & Böckerman, Petri, 2002. "On Whom Falls the Burden of Restructuring? Evidence from Finland," Discussion Papers 714, The Research Institute of the Finnish Economy.
  9. Mahmood Arai & Fredrik Heyman, 2004. "Temporary contracts and the dynamics of job turnover," Economics Bulletin, AccessEcon, vol. 10(4), pages 1-6.

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