Cyclical Reallocation of Workers Across Employers by Firm Size and Firm Wage
Henry Hyatt () and
Working Papers from U.S. Census Bureau, Center for Economic Studies
Do the job-to-job moves of workers contribute to the cyclicality of employment growth at different types of firms? In this paper, we use linked employer-employee data to provide direct evidence on the role of job-to-job flows in job reallocation in the U.S. economy. To guide our analysis, we look to the theoretical literature on on-the-job search, which predicts that job-to-job flows should reallocate workers from small to large firms. While this prediction is not supported by the data, we do find that job-to-job moves generally reallocate workers from lower paying to higher paying firms, and this reallocation of workers is highly procyclical. During the Great Recession, this firm wage job ladder collapsed, with net worker reallocation to higher wage firms falling to zero. We also find that differential responses of net hires from non-employment play an important role in the patterns of the cyclicality of employment dynamics across firms classified by size and wage. For example, we find that small and low wage firms experience greater reductions in net hires from non-employment during periods of economic contractions.
New Economics Papers: this item is included in nep-bec and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (14) Track citations by RSS feed
Downloads: (external link)
https://www2.census.gov/ces/wp/2015/CES-WP-15-13.pdf First version, 2015 (application/pdf)
Working Paper: Cyclical Reallocation of Workers Across Employers by Firm Size and Firm Wage (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:15-13
Access Statistics for this paper
More papers in Working Papers from U.S. Census Bureau, Center for Economic Studies Contact information at EDIRC.
Series data maintained by Erica Coates ().