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Where Did They Go?

Author

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  • Frederiksen, Anders

    () (Aarhus University)

  • Westergård-Nielsen, Niels C.

    () (Copenhagen Business School)

Abstract

We study individual job-separations and their associated destination states for all individuals in the private sector in Denmark for the period 1980 to 1995 and account for the cyclical flows. We find that individual and workplace characteristics as well as business cycle effects are important in explaining the individual behaviour. In policy simulations we look at the impact on individual transitions. We find that structural and growth policies have different implications for the economy. Policy interventions with the purpose of preventing firm closures are argued to be inefficient.

Suggested Citation

  • Frederiksen, Anders & Westergård-Nielsen, Niels C., 2002. "Where Did They Go?," IZA Discussion Papers 414, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp414
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    References listed on IDEAS

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    1. Daniel S. Hamermesh & Wolter H. J. Hassink & Jan C. Van Ours, 1996. "Job Turnover and Labor Turnover: A taxinomy of Employment Dynamics," Annals of Economics and Statistics, GENES, issue 41-42, pages 21-40.
    2. John M. Abowd & Patrick Corbel & Francis Kramarz, 1999. "The Entry And Exit Of Workers And The Growth Of Employment: An Analysis Of French Establishments," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 170-187, May.
    3. Steven J. Davis & John Haltiwanger, 1992. "Gross Job Creation, Gross Job Destruction, and Employment Reallocation," The Quarterly Journal of Economics, Oxford University Press, vol. 107(3), pages 819-863.
    4. Groot, Wim, 1990. "The effects of benefits and duration dependence on re-employment probabilities," Economics Letters, Elsevier, vol. 32(4), pages 371-376, April.
    5. Oliver Jean Blanchard & Peter Diamond, 1990. "The Cyclical Behovior of the Gross Flows of U.S. Workers," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 21(2), pages 85-156.
    6. Patricia M. Anderson & Bruce D. Meyer, 1994. "The Extent and Consequences of Job Turnover," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(1994 Micr), pages 177-248.
    7. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, Oxford University Press, vol. 87(3), pages 355-374.
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    Citations

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    Cited by:

    1. Rikke Ibsen & Niels Westergaard-Nielsen, 2005. "Job Creation and Destruction over the Business Cycles and the Impact on Individual Job Flows in Denmark 1980-2001," AStA Advances in Statistical Analysis, Springer;German Statistical Society, vol. 89(2), pages 183-207, June.
    2. Rasmus Lentz & Dale T. Mortensen, 2008. "An Empirical Model of Growth Through Product Innovation," Econometrica, Econometric Society, vol. 76(6), pages 1317-1373, November.
    3. Vikström, Johan & Rosholm, Michael & Svarer, Michael, 2011. "The Relative Efficiency of Active Labour Market Policies: Evidence From a Social Experiment and Non-Parametric Methods," Working Paper Series, Center for Labor Studies 2011:4, Uppsala University, Department of Economics.
    4. Anders Frederiksen, 2004. "Explaining Individual Job Separations in a Segregated Labor Market," Working Papers 869, Princeton University, Department of Economics, Industrial Relations Section..
    5. Tor Eriksson & Niels Westergaard-Nielsen, 2009. "Wage and Labor Mobility in Denmark, 1980-2000," NBER Chapters, in: The Structure of Wages: An International Comparison, pages 101-123, National Bureau of Economic Research, Inc.
    6. Ronald Bachmann & Peggy Bechara, 2019. "The Importance of Two‐Sided Heterogeneity for the Cyclicality of Labour Market Dynamics," Manchester School, University of Manchester, vol. 87(6), pages 794-820, December.
    7. Michela Ponzo, 2012. "On-the-job Search in Italian Labor Markets: An Empirical Analysis," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 19(2), pages 213-232, July.
    8. Thomas Cornelißen, 2009. "The Interaction of Job Satisfaction, Job Search, and Job Changes. An Empirical Investigation with German Panel Data," Journal of Happiness Studies, Springer, vol. 10(3), pages 367-384, June.
    9. Vikström, Johan & Rosholm, Michael & Svarer, Michael, 2011. "The relative efficiency of active labour market policy: evidence from a social experiment and non-parametric methods," Working Paper Series 2011:7, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    10. Kristensen, Nicolai & Westergård-Nielsen, Niels C., 2004. "Does Low Job Satisfaction Lead to Job Mobility?," IZA Discussion Papers 1026, Institute of Labor Economics (IZA).
    11. de Koning, J. & Layard, R. & Nickell, S. & Westergaard-Nielsen, N., 2004. "Policies for full employment," LSE Research Online Documents on Economics 47444, London School of Economics and Political Science, LSE Library.
    12. Maliranta, Mika & Nikulainen, Tuomo, 2008. "Labour Force Paths as Industry Linkages: A Perspective on Clusters and Industry Life Cycles," Discussion Papers 1168, The Research Institute of the Finnish Economy.

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    More about this item

    Keywords

    job separations; transition probabilities; Business cycles;
    All these keywords.

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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