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JOB-TO-JOB (J2J) Flows: New Labor Market Statistics From Linked Employer-Employee Data

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  • Henry Hyatt
  • Erika McEntarfer
  • Kevin McKinney
  • Stephen Tibbets
  • Doug Walton

Abstract

Flows of workers across jobs are a principal mechanism by which labor markets allocate workers to optimize productivity. While these job flows are both large and economically important, they represent a significant gap in available economic statistics. A soon to be released data product from the U.S. Census Bureau will fill this gap. The Job-to-Job (J2J) flow statistics provide estimates of worker flows across jobs, across different geographic labor markets, by worker and firm characteristics, including direct job-to-job flows as well as job changes with intervening nonemployment. In this paper, we describe the creation of the public-use data product on job-to-job flows. The data underlying the statistics are the matched employer-employee data from the U.S. Census Bureau’s Longitudinal Employer-Household Dynamics program. We describe definitional issues and the identification strategy for tracing worker movements between employers in administrative data. We then compare our data with related series and discuss similarities and differences. Lastly, we describe disclosure avoidance techniques for the public use file, and our methodology for estimating national statistics when there is partially missing geography.

Suggested Citation

  • Henry Hyatt & Erika McEntarfer & Kevin McKinney & Stephen Tibbets & Doug Walton, 2014. "JOB-TO-JOB (J2J) Flows: New Labor Market Statistics From Linked Employer-Employee Data," Working Papers 14-34, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:14-34
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    References listed on IDEAS

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    1. Abowd, John M. & Vilhuber, Lars, 2011. "National estimates of gross employment and job flows from the Quarterly Workforce Indicators with demographic and industry detail," Journal of Econometrics, Elsevier, vol. 161(1), pages 82-99, March.
    2. Melissa Bjelland & Bruce Fallick & John Haltiwanger & Erika McEntarfer, 2011. "Employer-to-Employer Flows in the United States: Estimates Using Linked Employer-Employee Data," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 29(4), pages 493-505, October.
    3. Bruce Fallick & John Haltiwanger & Erika McEntarfer, 2012. "Job-to-job flows and the consequences of job separations," Finance and Economics Discussion Series 2012-73, Board of Governors of the Federal Reserve System (U.S.).
    4. Henry Hyatt & James Spletzer, 2013. "The recent decline in employment dynamics," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-21, December.
    5. Henry Hyatt & Erika McEntarfer, 2012. "Job-to-Job Flows in the Great Recession," American Economic Review, American Economic Association, vol. 102(3), pages 580-583, May.
    6. John M. Abowd & Bryce E. Stephens & Lars Vilhuber & Fredrik Andersson & Kevin L. McKinney & Marc Roemer & Simon Woodcock, 2009. "The LEHD Infrastructure Files and the Creation of the Quarterly Workforce Indicators," NBER Chapters, in: Producer Dynamics: New Evidence from Micro Data, pages 149-230, National Bureau of Economic Research, Inc.
    7. Cody Henderson & Henry Hyatt, 2012. "Estimation of Job-to-Job Flow Rates under Partially Missing Geography," Working Papers 12-29, Center for Economic Studies, U.S. Census Bureau.
    8. John Haltiwanger & Henry Hyatt & Erika McEntarfer & Liliana Sousa & Stephen Tibbets, 2014. "Firm Age And Size In The Longitudinal Employer-Household Dynamics Data," Working Papers 14-16, Center for Economic Studies, U.S. Census Bureau.
    9. Henry Hyatt & Erika McEntarfer, 2012. "Job-to-Job Flows and the Business Cycle," Working Papers 12-04, Center for Economic Studies, U.S. Census Bureau.
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    Cited by:

    1. John C. Haltiwanger & Henry R. Hyatt & Lisa B. Kahn & Erika McEntarfer, 2018. "Cyclical Job Ladders by Firm Size and Firm Wage," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(2), pages 52-85, April.
    2. Emin Dinlersoz & Henry Hyatt & Hubert Janicki, 2019. "Who Works for Whom? Worker Sorting in a Model of Entrepreneurship with Heterogeneous Labor Markets," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 34, pages 244-266, October.
    3. Joyce K. Hahn & Henry R. Hyatt & Hubert P. Janicki & Stephen R. Tibbets, 2017. "Job-to-Job Flows and Earnings Growth," American Economic Review, American Economic Association, vol. 107(5), pages 358-363, May.
    4. Emin Dinlersoz & Henry Hyatt & Hubert Janicki, 2019. "Who Works for Whom? Worker Sorting in a Model of Entrepreneurship with Heterogeneous Labor Markets," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 34, pages 244-266, October.
    5. John Haltiwanger & Henry Hyatt & Erika McEntarfer, 2018. "Who Moves Up the Job Ladder?," Journal of Labor Economics, University of Chicago Press, vol. 36(S1), pages 301-336.
    6. John Haltiwanger & Henry Hyatt & Erika McEntarfer, 2015. "Cyclical Reallocation of Workers Across Employers by Firm Size and Firm Wage," NBER Working Papers 21235, National Bureau of Economic Research, Inc.
    7. Henry Hyatt & Erika McEntarfer & Ken Ueda & Alexandria Zhang, 2018. "Interstate Migration and Employer-to-Employer Transitions in the United States: New Evidence From Administrative Records Data," Demography, Springer;Population Association of America (PAA), vol. 55(6), pages 2161-2180, December.
    8. Isaac Sorkin, 2018. "Ranking Firms Using Revealed Preference," The Quarterly Journal of Economics, Oxford University Press, vol. 133(3), pages 1331-1393.
    9. Hyatt, Henry R. & Spletzer, James R., 2016. "The shifting job tenure distribution," Labour Economics, Elsevier, vol. 41(C), pages 363-377.
    10. Christopher Goetz & Henry Hyatt & Erika McEntarfer & Kristin Sandusky, 2016. "The Promise and Potential of Linked Employer-Employee Data for Entrepreneurship Research," NBER Chapters, in: Measuring Entrepreneurial Businesses: Current Knowledge and Challenges, pages 433-462, National Bureau of Economic Research, Inc.
    11. Henry R. Hyatt, 2015. "The decline in job-to-job flows," IZA World of Labor, Institute of Labor Economics (IZA), pages 175-175, July.
    12. Henry Hyatt & Erika McEntarfer & Ken Ueda & Alexandria Zhang, 2016. "Interstate Migration and Employer-to-Employer Transitions in the U.S.: New Evidence from Administrative Records Data," Working Papers 16-44r, Center for Economic Studies, U.S. Census Bureau.
    13. Nellie Zhao & Henry Hyatt & Isabel Cairo, 2016. "The U.S. Job Ladder and the Low-Wage Jobs of the New Millennium," 2016 Meeting Papers 1414, Society for Economic Dynamics.
    14. Barth, Erling & Kerr, Sari Pekkala & Olivetti, Claudia, 2021. "The dynamics of gender earnings differentials: Evidence from establishment data," European Economic Review, Elsevier, vol. 134(C).
    15. Sari Pekkala Kerr & William R. Kerr & Ramana Nanda, 2015. "House Money and Entrepreneurship," Harvard Business School Working Papers 15-069, Harvard Business School.
    16. Lisa B. Kahn & Erika McEntarfer, 2014. "Employment Cyclicality and Firm Quality," NBER Working Papers 20698, National Bureau of Economic Research, Inc.
    17. Hahn, Joyce K. & Hyatt, Henry R. & Janicki, Hubert P., 2021. "Job ladders and growth in earnings, hours, and wages," European Economic Review, Elsevier, vol. 133(C).
    18. Leland Crane & Henry Hyatt & Seth Murray, 2018. "Cyclical Labor Market Sorting," 2018 Meeting Papers 939, Society for Economic Dynamics.
    19. Sari Kerr & William R. Kerr & Ramana Nanda, 2015. "House Prices, Home Equity and Entrepreneurship: Evidence from U.S. Census Micro Data," NBER Working Papers 21458, National Bureau of Economic Research, Inc.
    20. John M. Abowd & Ian M. Schmutte & Lars Vilhuber, 2018. "Disclosure Limitation and Confidentiality Protection in Linked Data," Working Papers 18-07, Center for Economic Studies, U.S. Census Bureau.
    21. Henry R. Hyatt & James R. Spletzer, 2016. "The Shifting Job Tenure Distribution†," Working Papers 16-12r, Center for Economic Studies, U.S. Census Bureau.

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