Working Paper: CEPR ID: DP1125
Authors: Simon Burgess; Julia Lane; David Stevens
Abstract: We utilize a large firm-level panel dataset to explore the links between gross job flows and gross worker flows. Our findings have relevance for models of job creation and destruction, of labour reallocation and of employment adjustment costs. We find churning flows (the difference between worker and job flows at the firm) to be high, pervasive, and highly persistent over time within firms. We find the dynamic relationship between job and worker flows to be quite complex: lagged job flows raise churning flows, but the effect of churning flows on job flows is asymmetric.
Keywords: gross job flows; worker flows; labour reallocation
JEL Codes: E32; J23; J63
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| lagged job flows (J69) | churning flows (E10) |
| churning flows (E10) | job flows (J62) |