Hiring, Churn and the Business Cycle
Churn, defined as replacing departing workers with new ones as workers move to more productive uses, is an important feature of labor dynamics. The majority of hiring and separation reflects churn rather than hiring for expansion or separation for contraction. Using the JOLTS data, we show that churn decreased significantly during the most recent recession with almost four-fifths of the decline in hiring reflecting decreases in churn. Reductions in churn have costs because they reflect a reduction in labor movement to higher valued uses. We estimate the cost of reduced churn to be $208 billion. On an annual basis, this amounts to about .4% of GDP for a period of 3 1/2 years.
|Date of creation:||Mar 2012|
|Date of revision:|
|Publication status:||published as “Hiring, Churn, and the Business Cycle” (with Edward P. Lazear). American Economic Review Papers and Proceedings, Vol. 102, No 3, May 2012, pp. 575-579.|
|Contact details of provider:|| Postal: |
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Burgess, Simon & Lane, Julia & Stevens, David, 1995.
"Job Flows, Worker Flows and Churning,"
CEPR Discussion Papers
1125, C.E.P.R. Discussion Papers.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:17910. 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: ()
If references are entirely missing, you can add them using this form.