Worker Flows and Firm Dynamics in a Labour Market Model

Carlos Henrique Corseuil

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper we build an integrated framework of the labor market in which worker replacement, job creation and job destruction are decided simultaneously at the firm level, providing a rigorous instrument for the analysis of worker flows. The main features of the model are uncertainty related to worker X firm match quality and search frictions. Worker flow components are decided as firms learn about the quality of their matches. A negative cor- relation between replacement and job creation arises from this mechanism. The model also provides several implications for firm dynamics, which are all confirmed by related empirical papers.

Keywords: worker flows; firm dynamics (search for similar items in EconPapers)
JEL-codes: J63 J64 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-lab and nep-lam
Date: 2009-07

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Persistent link: http://EconPapers.repec.org/RePEc:pra:mprapa:16157

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