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Measuring Employer-to-Employer Reallocation

Author

Listed:
  • Shigeru Fujita
  • Giuseppe Moscarini
  • Fabien Postel-Vinay

Abstract

We revisit measurement of employer-to-employer (EE) transitions in the monthly Current Population Survey. The incidence of missing answers to the question on change of employer sharply increases starting with the introduction of a new software instrument to conduct interviews in January 2007 and of the Respondent Identification Policy in 2008–2009. We document nonrandom nonresponse selection by observable and unobservable worker characteristics that correlate with EE mobility. We propose a selection model and a procedure to impute missing answers. Our imputed EE aggregate series no longer trends down after 2000 and restores a close congruence with the business cycle after 2007.

Suggested Citation

  • Shigeru Fujita & Giuseppe Moscarini & Fabien Postel-Vinay, 2024. "Measuring Employer-to-Employer Reallocation," American Economic Journal: Macroeconomics, American Economic Association, vol. 16(3), pages 1-51, July.
    • Handle: RePEc:aea:aejmac:v:16:y:2024:i:3:p:1-51
    DOI: 10.1257/mac.20210076
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The implications of employer-to-employer transitions on inflation dynamics
      by ? in FRED blog on 2025-02-06 14:00:00
    2. Employer-to-employer transitions : Data from the Philadelphia Fed
      by ? in FRED blog on 2024-12-09 14:00:00

    Citations

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    Cited by:

    1. William Arbour & David J. Price, 2025. "What Occupations Do," Working Papers tecipa-800, University of Toronto, Department of Economics.
    2. Monica Costa Dias & Ella Johnson-Watts & Robert Joyce & Fabien Postel-Vinay & Peter Spittal & Xiaowei Xu, 2021. "Worker Mobility and Labour Market Opportunities," Bristol Economics Discussion Papers 21/753, School of Economics, University of Bristol, UK.
    3. Jake Bradley, 2025. "Worker-Firm Screening and the Business Cycle," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 57, July.
    4. Antoine Bertheau & Rune Vejlin, 2025. "Job Ladders by Firm Wage and Productivity," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 58, October.
    5. Proebsting, Christian, 2022. "Market segmentation and spending multipliers," Journal of Monetary Economics, Elsevier, vol. 128(C), pages 1-19.
    6. John Forth & Carl Singleton & Alex Bryson & Van Phan & Felix Ritchie & Lucy Stokes & Damian Whittard, 2025. "The Impact of a Rising Wage Floor on Labour Mobility Across Firms," British Journal of Industrial Relations, London School of Economics, vol. 63(4), pages 746-757, December.
    7. Raven Molloy & Christopher L. Smith & Abigail Wozniak, 2024. "Changing Stability in U.S. Employment Relationships: A Tale of Two Tails," Journal of Human Resources, University of Wisconsin Press, vol. 59(1), pages 35-69.
    8. Christian vom Lehn & Cache Ellsworth & Zachary Kroff, 2022. "Reconciling Occupational Mobility in the Current Population Survey," Journal of Labor Economics, University of Chicago Press, vol. 40(4), pages 1005-1051.
    9. David Autor & Arindrajit Dube & Annie McGrew, 2023. "The unexpected compression: Competition at work in the low wage labor market," POID Working Papers 076, Centre for Economic Performance, LSE.
    10. Régis Barnichon & Adam Shapiro, 2024. "Phillips Meets Beveridge," NBER Chapters, in: Inflation in the COVID Era and Beyond, National Bureau of Economic Research, Inc.
    11. Darougheh, Saman & Faccini, Renato & Melosi, Leonardo & Villa, Alessandro T., 2024. "On-the-Job Search and Inflation under the Microscope," The Warwick Economics Research Paper Series (TWERPS) 1536, University of Warwick, Department of Economics.
    12. Cynthia L. Doniger, 2021. "The Ways the Cookie Crumbles: Education and the Margins of Cyclical Adjustment in the Labor Market," Finance and Economics Discussion Series 2021-019, Board of Governors of the Federal Reserve System (U.S.).
    13. Abrahams, Scott, 2024. "Downward minimum wage rigidity: Evidence from a temporary four-month increase in St. Louis," Journal of Economic Behavior & Organization, Elsevier, vol. 218(C), pages 30-47.
    14. Bertheau, Antoine & Bunzel, Henning & Vejlin, Rune Majlund, 2020. "Employment Reallocation over the Business Cycle: Evidence from Danish Data," IZA Discussion Papers 13681, Institute of Labor Economics (IZA).
    15. Agostino Consolo & Filippos Petroulakis, 2024. "Did COVID‐19 induce a reallocation wave?," Economica, London School of Economics and Political Science, vol. 91(364), pages 1349-1390, October.
    16. Jeronimo Carballo & Richard K. Mansfield & Charles Adam Pfander, 2024. "U.S. Worker Mobility Across Establishments within Firms: Scope, Prevalence, and Effects on Worker Earnings," NBER Working Papers 32420, National Bureau of Economic Research, Inc.
    17. Francesco Roncone, 2025. "Work-Hour Instability, Occupational Mobility and Gender," Working Papers wp1201, Dipartimento Scienze Economiche, Universita' di Bologna.
    18. Simmons, Michael, 2023. "Job-to-job transitions, job finding and the ins of unemployment," Labour Economics, Elsevier, vol. 80(C).
    19. Bertheau, Antoine & Vejlin, Rune, 2022. "Employer-to-Employer Transitions and Time Aggregation Bias," Labour Economics, Elsevier, vol. 75(C).
    20. Rujiwattanapong, W. Similan, 2025. "Unemployment dynamics and endogenous unemployment insurance extensions," European Economic Review, Elsevier, vol. 178(C).
    21. Basso, Gaetano & Depalo, Domenico & Lattanzio, Salvatore, 2023. "Worker flows and reallocation during the recovery," Labour Economics, Elsevier, vol. 83(C).
    22. Cynthia Doniger, 2023. "Wage Dispersion with Heterogeneous Wage Contracts," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 51, pages 138-160, December.
    23. Robert Bernhardt & David Munro & Erin L. Wolcott, 2024. "How does the dramatic rise of nonresponse in the Current Population Survey impact labor market indicators?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 39(3), pages 498-512, April.
    24. Hyatt Henry & Murray Seth & Kristin Sandusky L., 2021. "Business Income Dynamics and Labor Market Fluidity," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-51, January.

    More about this item

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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