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Have Employment Relationships in the United States Become Less Stable?

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  • Cynthia Bansak
  • Steven Raphael

Abstract

There has been considerable debate as to whether job stability has declined in the United States. This paper uses data from the Survey of Income and Program Participation (SIPP) to examine the incidence of labor market turnover between 1986 and 1993. Specifically, we calculate one- and two-year separation rates and then analyze turnover by the source of separation. We find that the incidence of job separations did not increase over the period under investigation, but appears to have declined somewhat. When analyzing separations by reason, conditional on separating from an employer, we find little evidence of temporal changes in the composition of turnover that would indicate greater employment instability. Therefore, we do not find conclusive evidence that employment relationships have become more unstable in the recent past. Copyright IAES 2006

Suggested Citation

  • Cynthia Bansak & Steven Raphael, 2006. "Have Employment Relationships in the United States Become Less Stable?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 12(3), pages 342-357, August.
    • Handle: RePEc:kap:iaecre:v:12:y:2006:i:3:p:342-357:10.1007/s11294-006-9022-6
    DOI: 10.1007/s11294-006-9022-6
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    Cited by:

    1. Bruce Fallick & Charles A. Fleischman, 2001. "The importance of employer-to-employer flows in the U.S. labor market," Finance and Economics Discussion Series 2001-18, Board of Governors of the Federal Reserve System (U.S.).
    2. Miikka Rokkanen & Roope Uusitalo, 2013. "Changes in Job Stability – Evidence from Lifetime Job Histories," Finnish Economic Papers, Finnish Economic Association, vol. 26(2), pages 36-55, Autumn.
    3. Susan N. Houseman & Anne E. Polivka, 1999. "The Implications of Flexible Staffing Arrangements for Job Stability," Upjohn Working Papers 99-56, W.E. Upjohn Institute for Employment Research.
    4. Charles L. Baum, 2022. "Seven jobs in a lifetime? An analysis of employee tenure," Economic Inquiry, Western Economic Association International, vol. 60(2), pages 543-567, April.
    5. Friedberg Leora & Owyang Michael T & Sinclair Tara M, 2006. "Searching For Better Prospects: Endogenizing Falling Job Tenure and Private Pension Coverage," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 6(1), pages 1-42, August.
    6. David Neumark, 2000. "Changes in Job Stability and Job Security: A Collective Effort to Untangle, Reconcile, and Interpret the Evidence," NBER Working Papers 7472, National Bureau of Economic Research, Inc.
    7. Christian Sigouin, 2000. "Self-enforcing Employment Contracts and Business Cycle Fluctuations," Cahiers de recherche CREFE / CREFE Working Papers 127, CREFE, Université du Québec à Montréal.
    8. Sigouin, Christian, 2004. "Self-enforcing employment contracts and business cycle fluctuations," Journal of Monetary Economics, Elsevier, vol. 51(2), pages 339-373, March.
    9. Cynthia Bansak & Steven Raphael, 2008. "The State Children's Health Insurance Program and Job Mobility: Identifying Job Lock among Working Parents in Near-Poor Households," ILR Review, Cornell University, ILR School, vol. 61(4), pages 564-579, July.
    10. Bruce Fallick & Charles A. Fleischman, 2004. "Employer-to-employer flows in the U.S. labor market: the complete picture of gross worker flows," Finance and Economics Discussion Series 2004-34, Board of Governors of the Federal Reserve System (U.S.).
    11. Campbell III, Carl M., 2006. "A model of the determinants of effort," Economic Modelling, Elsevier, vol. 23(2), pages 215-237, March.

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    More about this item

    Keywords

    employment stability; labor turnover; J60; J63;
    All these keywords.

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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