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Job turnover and labor turnover: A taxonomy of employment dynamics

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Author Info

  • Hamermesh, D.S.
  • Hassink, W.H.J.
  • Ours, J.C. van

    (Tilburg University)

Abstract

We present an organized set of stylized facts on the relations among flows of workers, changes in employment and changes in the numer of jobs at the firm level. Job turnover is usually measured by comparing stocks of employment in each firm at two points in time and adding up the absolute employment changes. This measure is a just proxy for true job turnover because only net job changes are counted. In this paper we use information that allows us to compare this proxy with the correct measure. We compare both of these measures to a measure of labor turnover that counts movements of individuals into and out of jobs. We find that: 1) The proxy for job turnover does not differ substantially from actual job turnover; 2) There is a big difference between job turnover and labor turnover. Most mobility is into and out of existing jobs rather than to created or from destroyed jobs; 3) A large fraction of all hires are by firms where employment is declining, and a large fraction of all layoffs are by firms where employment is expanding; 4) Simultaneous hiring and firing is due to heterogeneity of the work force.

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Bibliographic Info

Paper provided by Tilburg University in its series Open Access publications from Tilburg University with number urn:nbn:nl:ui:12-86873.

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Date of creation: 1996
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Publication status: Published in Annales d'Economie et de Statistique (1996) v.41/42, p.21-40
Handle: RePEc:ner:tilbur:urn:nbn:nl:ui:12-86873

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Web page: http://www.tilburguniversity.edu/

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  1. Dunne, Timothy & Roberts, Mark J & Samuelson, Larry, 1989. "The Growth and Failure of U.S. Manufacturing Plants," The Quarterly Journal of Economics, MIT Press, vol. 104(4), pages 671-98, November.
  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. Daniel S. Hamermesh, 1988. "Labor Demand and the Structure of Adjustment Costs," NBER Working Papers 2572, National Bureau of Economic Research, Inc.
  4. 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.
  5. Ricardo J. Caballero & Eduardo M.R.A. Engel, 1992. "Microeconomic Adjustment Hazards and Aggregate Dynamics," NBER Working Papers 4090, National Bureau of Economic Research, Inc.
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