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Worker Inflow, Outflow, and Churning

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  • Ilmakunnas, Pekka
  • Maliranta, Mika

Abstract

Linked employer-employee data from Finnish business sector is used in analysing worker turnover. The data set is an unbalanced panel with over 219 000 observations in 1991-97. The churning (excess worker turnover), worker inflow, and worker outflow rates are explained by plant and employee characteristics. The probabilities of observing non-zero churning, inflow, and outflow rates increase with plant size. The magnitudes of the non-zero churning and inflow rates depend positively on size, but the magnitude of outflow rate depends negatively on size. High-wage plants have low turnover; plants with large within-plant variation in wages have high turnover. Average tenure of employees has a negative impact on turnover. High plant employment growth increases churning and separation but reduces hiring in the next year. Also controlled are average age and education of employees, shares of women and homeowners among employees, foreign ownership, ownership changes, and regional unemployment.

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Bibliographic Info

Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 861.

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Length: 30 pages
Date of creation: 2003
Date of revision:
Handle: RePEc:rif:dpaper:861

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References

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  1. John Haltiwanger & Milan Vodopivec, 2002. "Worker Flows, Job Flows and Firm Wage Policies: An Analysis of Slovenia," William Davidson Institute Working Papers Series 486, William Davidson Institute at the University of Michigan.
  2. Davis, Steven J. & Haltiwanger, John, 1999. "Gross job flows," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 41, pages 2711-2805 Elsevier.
  3. Brown, J. David & Earle, John S., 2002. "The Reallocation of Workers and Jobs in Russian Industry: New Evidence on Measures and Determinants," IZA Discussion Papers 564, Institute for the Study of Labor (IZA).
  4. Burgess, Simon & Lane, Julia & Stevens, David, 1995. "Job Flows, Worker Flows and Churning," CEPR Discussion Papers 1125, C.E.P.R. Discussion Papers.
  5. George A. Akerlof & Andrew K. Rose & Janet L. Yellen, 1988. "Job Switching and Job Satisfaction in the U.S. Labor Market," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 19(2), pages 495-594.
  6. Julia I. Lane & Alan G. Isaac & David W. Stevens, 1996. "Firm Heterogeneity and Worker Turnover," Labor and Demography 9602001, EconWPA.
  7. John M. Abowd & Patrick Corbel & Francis Kramarz, 1999. "The Entry And Exit Of Workers And The Growth Of Employment: An Analysis Of French Establishments," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 170-187, May.
  8. Ilmakunnas, Pekka & Maliranta, Mika, 2001. "The Turnover of Jobs and Workers in a Deep Recession: Evidence from the Finnish Business Sector," Discussion Papers 747, The Research Institute of the Finnish Economy.
  9. Derek Neal, 1998. "The Link between Ability and Specialization: An Explanation for Observed Correlations between Wages and Mobility Rates," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 173-200.
  10. McLaughlin, Kenneth J, 1991. "A Theory of Quits and Layoffs with Efficient Turnover," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 1-29, February.
  11. Edward P. Lazear, 1984. "Raids and Offermatching," NBER Working Papers 1419, National Bureau of Economic Research, Inc.
  12. Pekka Ilmakunnas & Mika Maliranta, 2004. "Hiring from unemployment and separation to unemployment," Applied Economics Letters, Taylor & Francis Journals, vol. 11(2), pages 91-95.
  13. Lutz Bellmann & Tito Boeri, 1998. "Internal And External Adjustment To New Technologies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 5(2-4), pages 325-343.
  14. Oswald Andrew J., 1996. "A Conjecture on the Explanation for High Unemployment in the Industrialized Nations : Part I," The Warwick Economics Research Paper Series (TWERPS) 475, University of Warwick, Department of Economics.
  15. Jos Van Ommeren & Giovanni Russo, 1997. "Are vacancies difficult to fill? an empirical investigation of the Dutch labour market," Applied Economics, Taylor & Francis Journals, vol. 29(3), pages 349-357.
  16. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
  17. Burgess, Simon & Lane, Julia & Stevens, David, 2001. "Churning dynamics: an analysis of hires and separations at the employer level," Labour Economics, Elsevier, vol. 8(1), pages 1-14, January.
  18. Burgess, Simon & Lane, Julia & Stevens, David, 2000. " The Reallocation of Labour and the Lifecycle of Firms," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(0), pages 885-907, Special I.
  19. Royalty, Anne Beeson, 1998. "Job-to-Job and Job-to-Nonemployment Turnover by Gender and Education Level," Journal of Labor Economics, University of Chicago Press, vol. 16(2), pages 392-443, April.
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Citations

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Cited by:
  1. Askenazy, Philippe & Moreno-Galbis, Eva, 2007. "Technological and Organizational Changes, and Labor Flows: Evidence on French Establishments," IZA Discussion Papers 2549, Institute for the Study of Labor (IZA).
  2. Philippe Azkenazy & Eva Moreno, 2004. "The impact of technological and organizational changes on labor flows. Evidence on French establishments," DELTA Working Papers 2004-25, DELTA (Ecole normale supérieure).
  3. Pedro S. Martins, 2008. "Worker churning and firms' wage policies," International Journal of Manpower, Emerald Group Publishing, vol. 29(1), pages 48-63, May.
  4. Ilmakunnas, Pekka & Ilmakunnas, Seija, 2012. "Age segregation and hiring of older employees: low mobility revisited," MPRA Paper 37655, University Library of Munich, Germany.
  5. Tsou, Meng-Wen & Liu, Jin-Tan, 2005. "Wage dispersion and employment turnover in Taiwan," Economics Letters, Elsevier, vol. 88(3), pages 408-414, September.
  6. Maliranta, Mika, 2005. "Foreign-owned Firms and Productivity-enhancing Restructuring in Finnish Manufacturing Industries," Discussion Papers 965, The Research Institute of the Finnish Economy.
  7. Maliranta, Mika, . "Micro Level Dynamics of Productivity Growth. An Empirical Analysis of the Great Leap in Finnish Manufacturing Productivity in 1975-2000," ETLA A, The Research Institute of the Finnish Economy, number 38.

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