IDEAS home Printed from https://ideas.repec.org/p/cen/wpaper/20-15.html
   My bibliography  Save this paper

Earnings Growth, Job Flows and Churn

Author

Listed:
  • Satoshi Tanaka
  • Lawrence Warren
  • David Wiczer

Abstract

How much do workers making job-to-job transitions benefit from moving away from a shrinking and towards a growing firm? We show that earnings growth in the transition increases with net employment growth at the destination firm and, to a lesser extent, decreases if the origin firm is shrinking. So, we sum the effect of leaving a shrinking and entering a growing firm and remove the excess turnover-related hires because gross hiring has a much smaller association with earnings growth than net employment growth. We find that job-to-job transitions with the cross-firm job flow have 23% more earnings growth than average.

Suggested Citation

  • Satoshi Tanaka & Lawrence Warren & David Wiczer, 2020. "Earnings Growth, Job Flows and Churn," Working Papers 20-15, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:20-15
    as

    Download full text from publisher

    File URL: https://www2.census.gov/ces/wp/2020/CES-WP-20-15.pdf
    File Function: First version, 2020
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Adrien G. Bilal & Niklas Engbom & Simon Mongey & Giovanni L. Violante, 2019. "Firm and Worker Dynamics in a Frictional Labor Market," NBER Working Papers 26547, National Bureau of Economic Research, Inc.
    2. Alessandro Gavazza & Simon Mongey & Giovanni L. Violante, 2018. "Aggregate Recruiting Intensity," American Economic Review, American Economic Association, vol. 108(8), pages 2088-2127, August.
    3. 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.
    4. Andreas Kettemann & Andreas I. Mueller & Josef Zweimüller, 2018. "Vacancy durations and entry wages: evidence from linked vacancy-employer-employee data," ECON - Working Papers 312, Department of Economics - University of Zurich.
    5. Hyatt, Henry R. & Spletzer, James R., 2017. "The recent decline of single quarter jobs," Labour Economics, Elsevier, vol. 46(C), pages 166-176.
    6. Melvyn G. Coles & Dale T. Mortensen, 2016. "Equilibrium Labor Turnover, Firm Growth, and Unemployment," Econometrica, Econometric Society, vol. 84, pages 347-363, January.
    7. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, December.
    8. Luigi Guiso & Luigi Pistaferri & Fabiano Schivardi, 2005. "Insurance within the Firm," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 1054-1087, October.
    9. Chang-Tai Hsieh & Peter J. Klenow, 2009. "Misallocation and Manufacturing TFP in China and India," The Quarterly Journal of Economics, Oxford University Press, vol. 124(4), pages 1403-1448.
    10. Bilal, Adrien & Engbom, Niklas & Mongey, Simon & Violante, Giovanni L., 2019. "Firm and Worker Dynamics in a Frictional Labor Market," CEPR Discussion Papers 14246, C.E.P.R. Discussion Papers.
    11. Giuseppe Moscarini & Fabien Postel-Vinay, 2017. "The Relative Power of Employment-to-Employment Reallocation and Unemployment Exits in Predicting Wage Growth," American Economic Review, American Economic Association, vol. 107(5), pages 364-368, May.
    12. Steven J. Davis & John Haltiwanger, 2014. "Labor Market Fluidity and Economic Performance," NBER Working Papers 20479, National Bureau of Economic Research, Inc.
    13. Robert H. Topel & Michael P. Ward, 1992. "Job Mobility and the Careers of Young Men," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 439-479.
    14. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cen:wpaper:20-15. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dawn Anderson). General contact details of provider: http://edirc.repec.org/data/cesgvus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.