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Are worker flows in France and the US so different? Revisiting French empirical evidence

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  • Duhautois, Richard
  • Petit, Héloïse

Abstract

This paper revisits empirical evidence on worker flows in France. We use much more recent and complete data than previous studies, and we innovate by estimating hires and separations separately for open-ended contract workers. Focusing on open-ended contracts for France yields a picture strikingly close to the US labor market. Our results downplay the hypothesis, previously stated in the literature, that downsizing French firms would adjust through reduction in hiring because of the rigidity of employment protection legislation. Such results call for more work to be done on the impact of employment protection legislation on labor flows.

Suggested Citation

  • Duhautois, Richard & Petit, Héloïse, 2015. "Are worker flows in France and the US so different? Revisiting French empirical evidence," Economics Letters, Elsevier, vol. 130(C), pages 60-62.
  • Handle: RePEc:eee:ecolet:v:130:y:2015:i:c:p:60-62
    DOI: 10.1016/j.econlet.2015.02.032
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    References listed on IDEAS

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    1. Steven J. Davis & R. Jason Faberman & John Haltiwanger, 2006. "The Flow Approach to Labor Markets: New Data Sources and Micro-Macro Links," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 3-26, Summer.
    2. 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.
    3. Davis, Steven J. & Faberman, R. Jason & Haltiwanger, John, 2012. "Labor market flows in the cross section and over time," Journal of Monetary Economics, Elsevier, vol. 59(1), pages 1-18.
    4. Steven J. Davis & John Haltiwanger, 1992. "Gross Job Creation, Gross Job Destruction, and Employment Reallocation," The Quarterly Journal of Economics, Oxford University Press, vol. 107(3), pages 819-863.
    5. 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.
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    More about this item

    Keywords

    Job flow; Worker flow; Entry; Exit; Establishment growth; France;

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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