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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

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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. 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, University of Chicago Press, vol. 7(1), pages 48-71, January.
  2. 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.
  3. Caballero, R.J. & Hammour, M.L., 1991. "The Cleansing Effect of Recessions," Discussion Papers, Columbia University, Department of Economics 1991_59, Columbia University, Department of Economics.
  4. 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.
  5. 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.
  6. Bertola, Giuseppe & Rogerson, Richard, 1996. "Institutions and Labour Reallocation," CEPR Discussion Papers 1519, C.E.P.R. Discussion Papers.
  7. 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.
  8. 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.
  9. Steve J. Davis & John Haltiwanger, 1991. "Gross job creation, gross job destruction and employment reallocation," Working Paper Series, Macroeconomic Issues 91-5, Federal Reserve Bank of Chicago.
  10. Boeri, Tito, 1996. "Is Job Turnover Countercyclical?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 14(4), pages 603-25, October.
  11. Ricardo J. Caballero & Mohamad L. Hammour, 1994. "On the Timing and Efficiency of Creative Destruction," NBER Working Papers 4768, National Bureau of Economic Research, Inc.
  12. Burda, Michael C & Wyplosz, Charles, 1993. "Gross Worker and Job Flows in Europe," CEPR Discussion Papers 868, C.E.P.R. Discussion Papers.
  13. 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.
  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. Cabrales, Antonio & Hopenhayn, Hugo A., 1997. "Labor-market flexibility and aggregate employment volatility," Carnegie-Rochester Conference Series on Public Policy, Elsevier, Elsevier, vol. 46(1), pages 189-228, June.
  16. 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.
  17. Christopher L. Foote, 1998. "Trend Employment Growth And The Bunching Of Job Creation And Destruction," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 113(3), pages 809-834, August.
  18. Lane, Julia & Stevens, David & Burgess, Simon, 1996. "Worker and job flows," Economics Letters, Elsevier, vol. 51(1), pages 109-113, April.
  19. Hopenhayn, Hugo A, 1992. "Entry, Exit, and Firm Dynamics in Long Run Equilibrium," Econometrica, Econometric Society, Econometric Society, vol. 60(5), pages 1127-50, September.
  20. Prakash Loungani & Bharat Trehan, 1997. "Job creation and destruction," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue may2.
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Citations

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Cited by:
  1. Lindström, Tomas, 2003. "The Role of High-Tech Capital Formation for Swedish Productivity Growth," Working Paper, National Institute of Economic Research 83, National Institute of Economic Research.
  2. Vartiainen, Juhana, 2010. "Interpreting Wage Bargaining Norms," Working Paper, National Institute of Economic Research 116, National Institute of Economic Research.
  3. Mahmood Arai & Fredrik Heyman, 2004. "Temporary contracts and the dynamics of job turnover," Economics Bulletin, AccessEcon, vol. 10(4), pages 1-6.
  4. 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, National Institute of Economic Research 94, National Institute of Economic Research.
  5. Gren, Ing-Marie, 2003. "Monetary Green Accounting and Ecosystem Services," Working Paper, National Institute of Economic Research 86, National Institute of Economic Research.
  6. 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, National Institute of Economic Research 118, National Institute of Economic Research.
  7. 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, National Institute of Economic Research 85, National Institute of Economic Research.
  8. 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.
  9. Piekkola, Hannu & Böckerman, Petri, 2002. "On Whom Falls the Burden of Restructuring? Evidence from Finland," Discussion Papers, The Research Institute of the Finnish Economy 714, The Research Institute of the Finnish Economy.

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