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Worker Flows and Job Flows: A Quantitative Investigation

Author

Listed:
  • Shigeru Fujita

    (Federal Reserve Bank of Philadelphia)

  • Makoto Nakajima

    (Federal Reserve Bank of Philadelphia)

Abstract

This paper studies quantitative properties of a multiple-worker firm search/matching model and investigates how worker transition rates and job flow rates are interrelated. We show that allowing for job-to-job transitions in the model is essential to simultaneously account for the cyclical features of worker transition rates and job flow rates. Important to this result are the distinctions between the job creation rate and the hiring rate and between the job destruction rate and the layoff rate. In the model without job-to-job transitions, these distinctions essentially disappear, thus making it impossible to simultaneously replicate the cyclical features of both labor market flows. (Copyright: Elsevier)

Suggested Citation

  • Shigeru Fujita & Makoto Nakajima, 2016. "Worker Flows and Job Flows: A Quantitative Investigation," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 22, pages 1-20, October.
    • Handle: RePEc:red:issued:10-219
    DOI: 10.1016/j.red.2016.06.001
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Job flows; Worker flows; Multiple-worker firm; Search and matching;
    All these keywords.

    JEL classification:

    • 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
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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    1. Worker flows and job flows: A quantitative investigation (Review of Economic Dynamics 2016) in ReplicationWiki

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