Working Paper: CEPR ID: DP1765
Authors: John M. Abowd; Patrick Corbel; Francis Kramarz
Abstract: Using data that permit a distinction between flows of workers, directly measured, and job creation and destruction, again, directly measured, we develop employment and job flow statistics for a representative sample of French establishments for 1987 to 1990. Annual job creation can be characterized as hiring three persons and separating two for each job created in a given year. Annual job destruction can be characterized as hiring one person and separating two for each job destroyed in a given year. When an establishment is changing employment, the adjustment is made primarily by reducing entry and not by changing the separation rates. There is considerable simultaneous hiring and separation, even controlling for skill group. Two-thirds of all hiring is on short-term contracts and more than half of separations are due to the ending of these short-term contracts.
Keywords: job flows; worker flows; hiring; separation; France
JEL Codes: D24; J23; J60
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Job Creation (J23) | Hiring Practices (M51) |
| Job Destruction (J63) | Separations (J12) |
| Employment Changes (J63) | Worker Entry Rates (J39) |
| Type of Employment Contract (M55) | Rates of Hiring and Separation (J63) |
| Internal Promotions (J62) | Employment Levels (J23) |
| Employment Adjustments (J63) | Entry Rates of Short-Term Contract Workers (J69) |