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Worker Flows and Firm Dynamics in a Labour Market Model

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Author Info
Corseuil, Carlos H. L.

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Abstract

In this paper we build an integrated framework of the labor market in which worker replacement, job creation and job destruction are decided simultaneously at the firm level, providing a rigorous instrument for the analysis of worker flows. The main features of the model are uncertainty related to worker X firm match quality and search frictions. Worker flow components are decided as firms learn about the quality of their matches. A negative cor- relation between replacement and job creation arises from this mechanism. The model also provides several implications for firm dynamics, which are all confirmed by related empirical papers.

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File URL: http://mpra.ub.uni-muenchen.de/16157/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16157.

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Date of creation: Jul 2009
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Handle: RePEc:pra:mprapa:16157

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Related research
Keywords: worker flows; firm dynamics;

Find related papers by JEL classification:
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search

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This page was last updated on 2009-11-30.

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