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The relationship between earnings and churn across firms and through job-to-job transitions

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  • David Wiczer
  • Lawrence F Warren

Abstract

In this technical note, we document a relationship between firm-level churn and average earnings at these firms. This is consistent with workhorse job-ladder models and has implications for models with frictional labor markets and residual wage dispersion. Using the worker-level panel dimension, we describe a job-ladder mechanism in which workers transition across employers in a way that aligns with changes in firm earnings and churn. The exercise demonstrates the feasibility of tabulating changes in churn to extend the Census’ Job-to-Job Flows data.

Suggested Citation

  • David Wiczer & Lawrence F Warren, 2026. "The relationship between earnings and churn across firms and through job-to-job transitions," CES Technical Notes Series 26-05, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:tnotes:26-05
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