Heterogeneity in the Cyclical Sensitivity of Job-to-Job Flows
Although the cyclical aspects of worker reallocation are investigated in numerous studies, only scarce empirical evidence exists for Germany. Kluve, Schaffner, and Schmidt (2009) emphasize the heterogeneity of cyclical influences for different subgroups of workers, defined by age, gender and skills. This paper contributes to this literature by extending this analysis to job-to-job flows. In fact, job-to-job transitions are found to be the largest flows in the German labor market. The findings suggest that job-finding rates and job-to-job transitions are procyclical while separation rates are acyclical or even countercyclical. The empirical framework employed here allows demographic groups to vary in their cyclical sensitivity. In Germany, young workers have the highest transition rates into and out of employment and between different jobs. Additionally, these transitions are more volatile than those of medium- aged or old workers. By contrast, old workers experience low transition rates and less pronounced swings than the core group of medium-aged, medium- skilled men.
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- Christoph Schmidt, 2000. "The heterogeneity and cyclical sensitivity of unemployment : and exploration of German labour market flows ; the European unemployment problem," CESifo Forum, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 1(1), pages 17-20, October.
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- Dale T. Mortensen & Christopher A. Pissarides, 1994. "Job Creation and Job Destruction in the Theory of Unemployment," Review of Economic Studies, Oxford University Press, vol. 61(3), pages 397-415.
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European Economic Review,
Elsevier, vol. 38(6), pages 1287-1315, June.
- repec:zbw:rwirep:0139 is not listed on IDEAS
- Kluve, Jochen & Schaffner, Sandra & Schmidt, Christoph M., 2009.
"Labor Force Status Dynamics in the German Labor Market - Individual Heterogeneity and Cyclical Sensitivity,"
Ruhr Economic Papers
139, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
- Kluve, Jochen & Schaffner, Sandra & Schmidt, Christoph M., 2006. "Labor Force Status Dynamics in the German Labor Market: Individual Heterogeneity and Cyclical Sensitivity," Technical Reports 2006,20, Technische Universität Dortmund, Sonderforschungsbereich 475: Komplexitätsreduktion in multivariaten Datenstrukturen.
- Eran Yashiv, 2008. "U.S. Labor Market Dynamics Revisited," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(4), pages 779-806, 03.
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