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Job Reallocation and Average Job Tenure: Theory and Workplace Evidence From Australia


  • Karen Mumford
  • Peter N. Smith


We explore determinants of job reallocation and the implications for employment change and average job tenure in this paper. A model which associates technological advances with the process of economic growth is modified and analysed. Data on average job tenure within workplaces and gross job flows across workplaces in Australia are constructed by us from a single panel of workplace data and examined. Substantial simultaneous job creation and destruction are found in a year of strong job growth, suggesting that workplace heterogeneity is an important feature of the Australian labour market. The predictions generated from the theoretical model are examined with the data for job flows and average job tenure. Our results support the key features of the model.

Suggested Citation

  • Karen Mumford & Peter N. Smith, "undated". "Job Reallocation and Average Job Tenure: Theory and Workplace Evidence From Australia," Discussion Papers 00/01, Department of Economics, University of York.
  • Handle: RePEc:yor:yorken:00/01

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    References listed on IDEAS

    1. Philippe Aghion & Peter Howitt, 1994. "Growth and Unemployment," Review of Economic Studies, Oxford University Press, vol. 61(3), pages 477-494.
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    More about this item


    labour market flows; job reallocation; creative-destruction; average-tenure;

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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