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Looking Inside the Perpetual-Motion Machine: Job and Worker Flows in OECD Countries

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  • Bassanini, Andrea

    ()
    (OECD)

  • Marianna, Pascal

    ()
    (OECD)

Abstract

There is an increasing interest in the process of job creation and destruction as well of hirings and separations. Many studies suggest that idiosyncratic firm-level characteristics shape both job and worker flows in a similar way in all countries. Others argue that cross-country differences in terms of gross job flows are minor. However, these statements are usually based on the comparison of national estimates, typically collected on the basis of different definitions and collection protocols. By contrast, in this paper, we use cross-country comparable data on both job and worker flows to examine key determinants of these flows and of their cross-country differences. We find that idiosyncratic firm (industry, firm age and size) and worker (age, gender, education) characteristics play an important role for both gross job and worker flows in all countries. Nevertheless, in contrast with part of the literature, we find that, even controlling for these factors, cross-country differences concerning both gross job and worker flows appear large and of a similar magnitude. Both job and worker flows in countries such as the United States and the United Kingdom exceed those in certain continental European countries by a factor of two. Moreover, the variation of worker flows across different dimensions is well explained by the variation of job flows, suggesting that, to a certain extent, the two flows can be used as substitutes in cross-country analysis. Consistently, churning flows, that is flows originating by firms churning workers and employees quitting and being replaced, display much less cross-country variation.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4452.

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Length: 56 pages
Date of creation: Sep 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4452

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Keywords: churning flows; separations; hirings; job destruction; cross-country differences; job creation;

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Cited by:
  1. Anyadike-Danes, Michael & Bjuggren, Carl-Magnus & Gottschalk, Sandra & Hölzl, Werner & Johansson, Dan & Maliranta, Mika & Myrann, Anja, 2013. "Accounting for Job Growth: Disentangling Size and Age Effects in an International Cohort Comparison," HUI Working Papers, HUI Research 84, HUI Research.
  2. Centeno, Mario & Machado, Carla & Novo, Alvaro A., 2009. "Excess Turnover and Employment Growth: Firm and Match Heterogeneity," IZA Discussion Papers 4586, Institute for the Study of Labor (IZA).
  3. Bellmann, Lutz & Gerner, Hans-Dieter & Upward, Richard, 2011. "Job and Worker Turnover in German Establishments," IZA Discussion Papers 6081, Institute for the Study of Labor (IZA).
  4. John Martin & Stefano Scarpetta, 2012. "Setting It Right: Employment Protection, Labour Reallocation and Productivity," De Economist, Springer, vol. 160(2), pages 89-116, June.
  5. Luca Marchiori & Olivier Pierrard & Henri R. Sneessens, 2011. "Demography, capital flows and unemployment," CREA Discussion Paper Series 11-14, Center for Research in Economic Analysis, University of Luxembourg.
  6. Kevin X. D. Huang & Gregory W. Huffman, 2010. "A Defense of the Current US Tax Treatment of Employer-Provided Medical Insurance," Vanderbilt University Department of Economics Working Papers 1001, Vanderbilt University Department of Economics.
  7. Luca Marchiori & Olivier Pierrard, 2012. "LOLA 2.0: Luxembourg OverLapping generation model for policy Analysis," BCL working papers 76, Central Bank of Luxembourg.
  8. Tobias Brändle & Wolf Dieter Heinbach, 2010. "Opening Clauses in Cellective Bargaining Agreements: More Flexibility to Save Jobs?," IAW Discussion Papers, Institut für Angewandte Wirtschaftsforschung (IAW) 67, Institut für Angewandte Wirtschaftsforschung (IAW).
  9. Richard Duhautois & Fabrice Gilles & Héloïse Petit, 2012. "Worker flows and establishment wage differentials : a breakdown of the relationship," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00833872, HAL.
  10. Brian Silverstone & Will Bell, 2011. "Gross Labour Market Flows in New Zealand: Some Questions and Answers," Working Papers in Economics, University of Waikato, Department of Economics 11/15, University of Waikato, Department of Economics.
  11. repec:hal:journl:halshs-00593952 is not listed on IDEAS

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