New Facts About Factor-Demand Dynamics: Employment, Jobs, and Workers
We provide a unified discussion of the relations among flows of workers, changes in employment and changes in the number of jobs at the level of the firm. Using the only available set of data (a nationally representative sample of Dutch firms in 1988 and 1990) we discover that: 1) Nearly half of all hiring is by firms where employment is not growing; 2) Over half of all firing is by firms that are not contracting; 3) Most firing is by firms that are also hiring; 4) Flows of workers within firms are small compared to flows into and out of firms; and 5) Accounting for simultaneous creation and destruction of jobs within firms adds roughly 15 percent to estimates of economywide job creation and destruction. The results imply that macroeconomic fluctuations can have substantial effects beyond those indicated by net employment changes at the firm level, and that studies of dynamic factor demand must account for variations in gross flows of workers.
|Date of creation:||Jan 1994|
|Date of revision:|
|Publication status:||published as Annales d'Economie et de Statistique, No.41/42, pp.21-39 (January 1996).|
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NBER Working Papers
5042, National Bureau of Economic Research, Inc.
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"Labor Demand and the Structure of Adjustment Costs,"
American Economic Review,
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1-87-5, Pennsylvania State - Department of Economics.
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Working Paper Series, Macroeconomic Issues
91-5, Federal Reserve Bank of Chicago.
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