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Age-Specific Cyclical Effects in Job Reallocation and Labor Mobility

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  • Gielen, Anne C.

    ()
    (Erasmus University Rotterdam)

  • van Ours, Jan C.

    ()
    (Tilburg University)

Abstract

We present an empirical analysis of job reallocation and labor mobility using matched worker-firm data for the Netherlands to investigate how firms adjust their workforce over the cycle. Our data cover the period 1993-2002. We find that cyclical adjustments of the workforce occur mainly through fluctuations in job creation for young and prime-age workers while for old workers they occur mainly through fluctuations in job destruction. Moreover, we find that business cycle fluctuations are used to rejuvenate the workforce. Workforce reductions are most harmful for old workers; for them the flow out of employment is a one-way street.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1670.

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Length: 34 pages
Date of creation: Jul 2005
Date of revision:
Publication status: published in: Labour Economics, 2006, 13 (4), 493-504
Handle: RePEc:iza:izadps:dp1670

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Keywords: matched worker-firm data; job creation; job destruction; accessions; separations;

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  1. Gautier, Pieter A. & Berg, Gerard J. van den & Ours, Jan C. van, 1999. "Separations at the firm level," Serie Research Memoranda, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics 0016, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
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  25. Oliver Jean Blanchard & Peter Diamond, 1990. "The Cyclical Behovior of the Gross Flows of U.S. Workers," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 21(2), pages 85-156.
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