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Time and space aggregation of the labor market flows

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  • Katarina Borovickova

    (New York University)

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    Abstract

    I present new empirical evidence on the relationship between the job flows, worker flows, and the time horizon at which these flows are measured. In particular, I show that worker flows grow linearly with the horizon at which they are measured; job flows grow approximately with the square root of the horizon. Further, I show that these patterns hold for all firm size categories separately, and that the magnitude of the job and worker flows decreases with employer's size. To interpret these patterns, I explore simple models of a representative firm which faces employment adjustment costs. I show that such a model can replicate some of the observed patterns. I discuss the implications of presented facts for interpreting the differences in the characteristics of the labor markets in Europe and the U.S.

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    File URL: http://www.economicdynamics.org/meetpapers/2013/paper_1338.pdf
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    Bibliographic Info

    Paper provided by Society for Economic Dynamics in its series 2013 Meeting Papers with number 1338.

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    Date of creation: 2013
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    Handle: RePEc:red:sed013:1338

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    1. 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, December.
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