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Age-Specific Cyclical Effects in Job Reallocation and Labor Mobility

  • Gielen, Anne C.

    ()

    (Erasmus University Rotterdam)

  • van Ours, Jan C.

    ()

    (Tilburg University)

We present an empirical analysis of job reallocation and labor mobility using matched worker-firm data for the Netherlands to investigate how firms adjust their workforce over the cycle. Our data cover the period 1993-2002. We find that cyclical adjustments of the workforce occur mainly through fluctuations in job creation for young and prime-age workers while for old workers they occur mainly through fluctuations in job destruction. Moreover, we find that business cycle fluctuations are used to rejuvenate the workforce. Workforce reductions are most harmful for old workers; for them the flow out of employment is a one-way street.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1670.

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Length: 34 pages
Date of creation: Jul 2005
Date of revision:
Publication status: published in: Labour Economics, 2006, 13 (4), 493-504
Handle: RePEc:iza:izadps:dp1670
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  1. Davis, Steven J. & Haltiwanger, John, 1999. "Gross job flows," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 41, pages 2711-2805 Elsevier.
  2. Gautier, P.A. & van den Berg, G. & van Ours, J.C. & Ridder, G., 1999. "Separations at the firm level," Other publications TiSEM 0bc95b07-e6ff-4899-87a6-4, Tilburg University, School of Economics and Management.
  3. Broersma, Lourens & Gautier, Pieter, 1997. " Job Creation and Job Destruction by Small Firms: An Empirical Investigation for the Dutch Manufacturing Sector," Small Business Economics, Springer, vol. 9(3), pages 211-24, June.
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  9. Gielen, Anne & van Ours, Jan C, 2005. "Age-Specific Cyclical Effects in Job Reallocation and Labour Mobility," CEPR Discussion Papers 5161, C.E.P.R. Discussion Papers.
  10. John M. Abowd & Francis Kramarz, 1997. "The Costs of Hiring and Separations," NBER Working Papers 6110, National Bureau of Economic Research, Inc.
  11. Gómez-Salvador, Ramón & Messina, Julián & Vallanti, Giovanna, 2004. "Gross job flows and institutions in Europe," Working Paper Series 0318, European Central Bank.
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  16. Burgess, Simon & Lane, Julia & Stevens, David, 2000. "Job Flows, Worker Flows, and Churning," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 473-502, July.
  17. Dohmen, Thomas J. & Pfann, Gerard A., 2004. "Worker separations in a nonstationary corporate environment," European Economic Review, Elsevier, vol. 48(3), pages 645-663, June.
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  20. Abowd, John M. & Haltiwanger, John C. & Lane, Julia & McKinney, Kevin Lee & Sandusky, L. Kristin, 2007. "Technology and the Demand for Skill: An Analysis of Within and Between Firm Differences," IZA Discussion Papers 2707, Institute for the Study of Labor (IZA).
  21. 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, June.
  22. Kim B. Clark & Lawrence H. Summers, 1980. "Demographic Differences in Cyclical Employment Variation," NBER Working Papers 0514, National Bureau of Economic Research, Inc.
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  25. Daniel S. HAMERMESH & Wolter H. J. HASSINK & Jan C. VAN OURS, 1996. "Job Turnover and Labor Turnover: A taxinomy of Employment Dynamics," Annales d'Economie et de Statistique, ENSAE, issue 41-42, pages 21-40.
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