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Did the Job Ladder Fail After the Great Recession?

Author

Listed:
  • Giuseppe Moscariniy

    (Yale University, Economics Department)

  • Fabien Postel-Vinay

    (University College London (UCL), Department of Economics
    Centre for Macroeconomics (CFM))

Abstract

We study employment reallocation across heterogeneous employers through the lens of a dynamic job-ladder model, where more productive employers spend more hiring effort and are more likely to succeed in hiring because they offer more. As a consequence, an employer's size is a relevant proxy for productivity. We exploit newly available U.S. data from JOLTS on employment flows by size of the establishment. Our parsimonious job ladder model fits the facts quite well, and implies `true' vacancy postings by size that are more in line with gross flows and intuition than JOLTS' actual measures of job openings, previously criticized by other authors. Focusing on the U.S. experience in and around the Great Recession, our main finding is that the job ladder stopped working in the GR and has not yet fully resumed.

Suggested Citation

  • Giuseppe Moscariniy & Fabien Postel-Vinay, 2013. "Did the Job Ladder Fail After the Great Recession?," Discussion Papers 1304, Centre for Macroeconomics (CFM).
  • Handle: RePEc:cfm:wpaper:1304
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Employment Reallocation; Job Ladder;

    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
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications

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