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Worker Churn and Employment Growth at the Establishment Level

Author

Listed:
  • Bachmann, Rüdiger

    () (University of Notre Dame)

  • Bayer, Christian

    () (University of Bonn)

  • Merkl, Christian

    () (University of Erlangen-Nuremberg)

  • Seth, Stefan

    () (Institute for Employment Research (IAB), Nuremberg)

  • Stüber, Heiko

    () (University of Erlangen-Nuremberg)

  • Wellschmied, Felix

    () (Universidad Carlos III de Madrid)

Abstract

We study the relationship between employment growth and worker flows in excess of job flows (churn) at the establishment level using the new German AWFP dataset spanning from 1975–2014. Churn is above 5 percent of employment along the entire employment growth distribution and most pronounced at rapidly-adjusting establishments. We find that the patterns of churn along the employment growth distribution can be explained by separation rate shocks and time-to-hire frictions. These shocks become larger on average during boom periods leading to procyclical worker churn. Distinguishing between separations into non-employment and to other establishments, we find that separations to other establishments drive all procyclical churn. In a secondary contribution, we compare German worker and job flows with their US counterparts and recent US findings.

Suggested Citation

  • Bachmann, Rüdiger & Bayer, Christian & Merkl, Christian & Seth, Stefan & Stüber, Heiko & Wellschmied, Felix, 2017. "Worker Churn and Employment Growth at the Establishment Level," IZA Discussion Papers 11063, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11063
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    References listed on IDEAS

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    Cited by:

    1. Lochner, Ben & Merkl, Christian & Stüber, Heiko & Gürtzgen, Nicole, 2019. "A note on recruiting intensity and hiring practices: Cross-sectional and time-series evidence," FAU Discussion Papers in Economics 04/2019, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.

    More about this item

    Keywords

    job flows; worker flows; churn; job-to-job transitions; aggregate fluctuations;

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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