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The Importance of Two-Sided Heterogeneity for the Cyclicality of Labour Market Dynamics

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  • Bachmann, Ronald

    ()
    (RWI)

  • David, Peggy

    ()
    (RWI)

Abstract

Using administrative data on individual workers' employment history and firms, we investigate the cyclicality of worker flows on the German labour market. Focusing on heterogeneities on both sides of the labour market, we find that small firms hire mainly unemployed workers, and that they do so at the beginning of an economic expansion. Later on in the expansion, hirings more frequently result from direct job-to-job transitions to larger firms. Transitions between employment and unemployment at large firms are generally found to be more cyclical. However, this stylised fact disappears when the composition of the workforce is controlled for.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5358.

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Length: 38 pages
Date of creation: Dec 2010
Date of revision:
Handle: RePEc:iza:izadps:dp5358

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Keywords: employer-to-employer; job-to-job; business cycle; separations; accessions; worker flows;

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References

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Cited by:
  1. Pastore, Francesco & Tyrowicz, Joanna, 2012. "Labour Turnover and the Spatial Distribution of Unemployment: A Panel Data Analysis Using Employment Registry Data," IZA Discussion Papers 7074, Institute for the Study of Labor (IZA).
  2. Ronald Bachmann & Daniel Baumgarten & Joel Stiebale, 2011. "Cross-border Investment, Heterogeneous Workers, and Employment Security – Evidence from Germany," Ruhr Economic Papers 0268, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  3. Francesco Pastore & Joanna Tyrowicz, 2013. "Polish high unemployment and spatial labor turnover. Insights from panel data analysis using unemployment registry data," Working Papers 2013-18, Faculty of Economic Sciences, University of Warsaw.
  4. Giuseppe Moscarini & Fabien Postel-Vinay, 2012. "The Contribution of Large and Small Employers to Job Creation in Times of High and Low Unemployment," American Economic Review, American Economic Association, vol. 102(6), pages 2509-39, October.
  5. Markus Heckmann & Susanne Noll & Martina Rebien, 2013. "Stellenbesetzungen mit Hindernissen: Bestimmungsfaktoren für den Suchverlauf," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer, vol. 6(3), pages 105-131, March.
  6. Ronald Bachmann & Mathias Sinning, 2011. "Decomposing the Ins and Outs of Cyclical Unemployment," Ruhr Economic Papers 0305, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

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