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Has Job Stability Declined Yet? New Evidence for the 1990's

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David Neumark
Daniel Polsky
Daniel Hansen

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Abstract

In earlier work we examined the temporal evolution of job stability in U.S. labor markets through the 1980's, using data assembled from a sequence of Current Population Survey tenure supplements. We found little or no change in aggregate job stability in the U.S. economy. In addition, older and more-tenured workers experienced increases in job stability in the" latter part of the 1980's. In this paper we update the evidence on changes in job stability through the mid-1990's, using recently-released CPS data for 1995 that parallel the earlier job tenure supplements. Updating the evidence from systematic random samples of the population and workforce through this period is especially important because the media have painted a particularly stark picture of declining job stability in the 1990's. In the aggregate, there is some evidence that job stability declined modestly in the first half of the 1990's. Moreover, the relatively small aggregate changes mask rather sharp declines in stability for workers with more than a few years of tenure. Nonetheless, the data available to this point do not support the conclusion that the downward shift in job stability for more-tenured workers stability, reflect long-term trends.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6330.

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Date of creation: Dec 1997
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Handle: RePEc:nbr:nberwo:6330

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Find related papers by JEL classification:
C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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  1. Hall, Robert E, 1982. "The Importance of Lifetime Jobs in the U.S. Economy," American Economic Review, American Economic Association, vol. 72(4), pages 716-24, September. [Downloadable!] (restricted)
  2. Ureta, Manuelita, 1992. "The Importance of Lifetime Jobs in the U.S. Economy, Revisited," American Economic Review, American Economic Association, vol. 82(1), pages 322-35, March. [Downloadable!] (restricted)
  3. Kenneth A. Swinnerton & Howard Wial, 1995. "Is job stability declining in the U.S. economy?," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 48(2), pages 293-304, January.
  4. Diebold, Francis X & Neumark, David & Polsky, Daniel, 1997. "Job Stability in the United States," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 206-33, April. [Downloadable!] (restricted)
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  2. Bergemann, Annette & Mertens, Antje, 2004. "Job Stability Trends, Layoffs, and Transitions to Unemployment: An Empirical Analysis for West Germany," IZA Discussion Papers 1368, Institute for the Study of Labor (IZA). [Downloadable!]
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  3. Steven G. Allen & Robert L. Clark & Sylvester J. Schieber, 1999. "Has Job Security Vanished in Large Corporations?," NBER Working Papers 6966, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Vera-Toscano, Esperanza & Phimister, Euan & Weersink, Alfons, 2002. "Short-Term Employment Transitions Of The Canadian Labour Force: Rural-Urban Differences," Working Papers 34143, University of Guelph, Department of Food, Agricultural and Resource Economics. [Downloadable!]
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  7. Gary Charness & David I. Levine, 2000. "When Are Layoffs Acceptable? Evidence From A Quasi-Experiment," University of California at Santa Barbara, Economics Working Paper Series 14-00, Department of Economics, UC Santa Barbara. [Downloadable!]
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