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Job Creation and Job Destruction, Worker Reallocation, and Wages

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  • Belzil, Christian

Abstract

Using Danish firm (workplace) data on employment reallocation merged with individual records, the effects of job creation/destruction and worker reallocation on wages are estimated using fixed effects techniques. After controlling for business cycle fluctuations, job creation is found to increase male wages. The effect of net job creation seems present at all phases of the business cycle. Entry wages as well as wages of low tenure workers appear much more sensitive to idiosyncratic job creation than wages of those who are already employed in a given firm. Except for entry wages, female wages are found in sensitive to net job creation. Copyright 2000 by University of Chicago Press.

Suggested Citation

  • Belzil, Christian, 2000. "Job Creation and Job Destruction, Worker Reallocation, and Wages," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 183-203, April.
  • Handle: RePEc:ucp:jlabec:v:18:y:2000:i:2:p:183-203
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    References listed on IDEAS

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    1. 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.
    2. Bertola, Giuseppe & Rogerson, Richard, 1997. "Institutions and labor reallocation," European Economic Review, Elsevier, vol. 41(6), pages 1147-1171, June.
    3. Keane, Michael & Moffitt, Robert & Runkle, David, 1988. "Real Wages over the Business Cycle: Estimating the Impact of Heterogeneity with Micro Data," Journal of Political Economy, University of Chicago Press, vol. 96(6), pages 1232-1266, December.
    4. Albaek, Karsten & Sorensen, Bent E, 1998. "Worker Flows and Job Flows in Danish Manufacturing, 1980-91," Economic Journal, Royal Economic Society, vol. 108(451), pages 1750-1771, November.
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    Cited by:

    1. Giuseppe Bertola & Pietro Garibaldi, 2001. "Wages and the Size of Firms in Dynamic Matching Models," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(2), pages 335-368, April.
    2. Fiona Duffy & Patrick Paul Walsh, 2000. "Individual Pay and Outside Options: Evidence from the Polish Labour Force Survey," William Davidson Institute Working Papers Series 364, William Davidson Institute at the University of Michigan.
    3. Luigi Guiso & Luigi Pistaferri & Fabiano Schivardi, 2006. "Disentangling employment and wage rigidity," 2006 Meeting Papers 536, Society for Economic Dynamics.
    4. Anette Haas & Thomas Rothe, 2006. "Labour Market in Motion - Analysing Regional Flows in a Multi-Account System," ERSA conference papers ersa06p12, European Regional Science Association.
    5. Heshmati, Almas, 2007. "Labor Market Policy Options of the Kurdistan Regional Government," IZA Discussion Papers 3247, Institute for the Study of Labor (IZA).
    6. Belzil, Christian & Bognanno, Michael L., 2004. "The Promotion Dynamics of American Executives," IZA Discussion Papers 1003, Institute for the Study of Labor (IZA).
    7. Leo Kaas & Philipp Kircher, 2015. "Efficient Firm Dynamics in a Frictional Labor Market," American Economic Review, American Economic Association, vol. 105(10), pages 3030-3060, October.
    8. Leland D. Crane, 2014. "Firm Dynamics and Assortative Matching," Working Papers 14-25, Center for Economic Studies, U.S. Census Bureau.
    9. Guiso, Luigi & Pistaferri, Luigi & Schivardi, Fabiano, 2006. "Labour Adjustment: Disentangling Firing and Mobility Costs," CEPR Discussion Papers 5787, C.E.P.R. Discussion Papers.
    10. Ariga, Kenn, 2006. "Horizontal transfer, vertical promotion, and evolution of firm organization," Journal of the Japanese and International Economies, Elsevier, vol. 20(1), pages 20-49, March.
    11. Marco Leonardi & Giovanni Pica, 2007. "Employment Protection Legislation and Wages," CSEF Working Papers 175, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    12. Monica Galizzi, 2005. "Wage Changes, Establishment Growth, and the Effect of Composition Bias," Eastern Economic Journal, Eastern Economic Association, vol. 31(2), pages 165-184, Spring.
    13. Amalia Cristescu & Maria Denisa Vasilescu & Larisa Stanila & Madalina Ecaterina Popescu, 2013. "Regional Analysis Of The Real Earnings In Romania," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 7(2), pages 58-78, DECEMBER.
    14. Westergaard-Nielsen, Niels, 2001. "Danish Labour Market Policy: Is it worth it?," CLS Working Papers 01-10, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
    15. Marco Leonardi & Giovanni Pica, 2013. "Who Pays for it? The Heterogeneous Wage Effects of Employment Protection Legislation," Economic Journal, Royal Economic Society, vol. 123(12), pages 1236-1278, December.
    16. Fahr, René & Sunde, Uwe, 2001. "Strategic Hiring Behavior in Empirical Matching Functions," IZA Discussion Papers 320, Institute for the Study of Labor (IZA).
    17. Guertzgen, Nicole, 2007. "Job and Worker Reallocation in German Establishments: The Role of Employers? Wage Policies and Labour Market Institutions," ZEW Discussion Papers 07-084, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    18. Pedersen, Peder J. & Smith, Nina, 2001. "International Migration and Migration policy in Denmark," CLS Working Papers 01-5, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
    19. Ana Rute Cardoso & Priscila Ferreira, 2009. "The dynamics of job creation and destruction for university graduates: why a rising unemployment rate can be misleading," Applied Economics, Taylor & Francis Journals, vol. 41(19), pages 2513-2521.
    20. Krause, M.U., 2002. "Inter-Industry Wage Differentials and Job Flows," Discussion Paper 2002-3, Tilburg University, Center for Economic Research.
    21. Monica Galizzi, 2007. "Wage Changes, Establishment Growth, and the Effect of Composition Bias," LABORatorio R. Revelli Working Papers Series 64, LABORatorio R. Revelli, Centre for Employment Studies.
    22. Haas, Anette & Rothe, Thomas, 2005. "Labour market dynamics from a regional perspective : the multi-account system," IAB Discussion Paper 200507, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    23. Sunde, Uwe, 2002. "Unobserved Bilateral Search on the Labor Market: A Theory-Based Correction for a Common Flaw in Empirical Matching Studies," IZA Discussion Papers 520, Institute for the Study of Labor (IZA).
    24. Ortega, Jaime, 2000. "Job Rotation as a Mechanism for Learning," CLS Working Papers 00-4, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
    25. Hawkins, William B. & Acemoglu, Daron, 2014. "Search with multi-worker firms," Theoretical Economics, Econometric Society, vol. 9(3), September.

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