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On-the-Job Search Over the Business Cycle

Author

Listed:
  • Giuseppe Tattara

    (Department of Economics, University Of Venice C� Foscari)

  • Marco Valentini

    (Tolomeo srl)

Abstract

On-the-Job Search is one of the most common and efficient ways to look for a new job, most of the time workers move directly from one employment position to another (E-to-E) without an intervening spell of unemployment. E-to-E transitions are a relevant component of total labour flows and have a definite cyclical pattern. This paper computes E-to-E worker flows through the development of a vacancy chain model. An iterative procedure is used to compute the successive reallocation runs, beginning from an autonomous vacancy and then to reconstruct the complete E-to-E transition process. The procedure is implemented and applied to a large micro-panel based on a highly industrialized Italian region from 1982 to 1996. E-to-E transitions are an increasingly large portion of worker flows in the labour market. They are clearly cyclic and the number of transitions increases over time as the labour market becomes tighter. These are the flows that explain labour market dynamics in upswings and recessions. Search models that look only at flows between employment, unemployment and outside of the labour force underestimate labour mobility and its cyclical pattern.

Suggested Citation

  • Giuseppe Tattara & Marco Valentini, 2007. "On-the-Job Search Over the Business Cycle," Working Papers 2007_15, Department of Economics, University of Venice "Ca' Foscari".
    • Handle: RePEc:ven:wpaper:2007_15
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    References listed on IDEAS

    as
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    Cited by:

    1. Giuseppe Tattara & Marco Valentini, 2010. "Turnover and Excess Worker Reallocation. The Veneto Labour Market between 1982 and 1996," LABOUR, CEIS, vol. 24(4), pages 474-500, December.

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    More about this item

    Keywords

    Job Flows; Search and Matching; Job to Job Mobility; Worker Flows; Business Cycle; Propagation;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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