Hiring, separations, vacancies and productivity

We study empirically and theoretically the flows of workers across firms of different productivity and the hiring effort of these firms. We combine four datasets from Denmark with very detailed information on workers, firms and vacancies posted. Using the data, we derive the patterns of hiring, separations and vacancy posting for firms of different productivity levels. We observe that some of the patterns are not fully consistent with the simple job-ladder model and propose a parsimonious theoretical model that can capture these patterns.