New Evidence on the Cyclicality of Employer-to-Employer Flows from Canada

Alice Nakamura, Emi Nakamura, Kyle Phong and Jón Steinsson

AEA Papers and Proceedings, 2019, vol. 109, 456-60

Abstract: This paper presents new estimates of gross worker flows for Canada for the sample period 1978 to 2016. We use administrative data from the Canadian Record of Employment in combination with the Canadian Labor Force Survey to estimate employer-to-employer flows in addition to flows between labor market states. We highlight three main results: Roughly two-thirds of all job separations are employer-to-employer flows. Employer-to-Employer flows are highly procyclical. The combination of these two results means that total job separations are procyclical. If employer-to-employer flows improve match quality, our results imply that recessions have a sullying effect on the labor market.

JEL-codes: E24 E32 J63 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.1257/pandp.20191053
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