Relationships that Last: Job Creation vs Job Duration

Britta Gehrke and Jacob Wong ()

No 2021-01, School of Economics and Public Policy Working Papers from University of Adelaide, School of Economics and Public Policy

Abstract: This paper documents observations about the duration of jobs created by establishments at various points along an establishment age curve. Using an employer-employee matched dataset from Germany, we observe a checkmark-shaped relationship between expected job duration and establishment age at the time of job creation. A simple frictional labour market model with two-sided heterogeneity featuring on-the-job search, a simple learning mechanism about worker ability and a life cycle productivity profile for firms is built to frame a discussion around the empirical finding. The model's mechanical job-ladder is shown to be able to produce such stylized correlations.

Keywords: job duration; firm age; frictional labour markets (search for similar items in EconPapers)
JEL-codes: E24 J63 J64 (search for similar items in EconPapers)
Date: 2021-03
New Economics Papers: this item is included in nep-bec, nep-dge, nep-lab and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:adl:wpaper:2021-01

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