Hires and Separations in Equilibrium
Edward Lazear and
Kristin McCue
Working Papers from U.S. Census Bureau, Center for Economic Studies
Abstract:
Hiring occurs primarily to fill vacant slots that occur when workers separate. Equivalently, separation occurs to move workers to better alternatives. A model of efficient separations yields several specific predictions. Labor market churn is most likely when mean wages are low and the variance in wages is high. Additionally, over the business cycle, churn decreases during recessions, with hires falling at the beginning of recessions and separations declining later to match hiring. Furthermore, the young disproportionately bear the brunt of employment declines. More generally, hires and separations are positively correlated over time as well as across industry and firm. These predictions are borne out in the LEHD microdata at the economy and firm level.
Pages: 50 pages
Date: 2016-01
New Economics Papers: this item is included in nep-bec and nep-ltv
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https://www2.census.gov/ces/wp/2016/CES-WP-16-57.pdf First version, 2016 (application/pdf)
Related works:
Working Paper: Hires and Separations in Equilibrium (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:16-57
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