Earnings Growth, Job Flows and Churn

Satoshi Tanaka, Lawrence Warren and David Wiczer

Working Papers from U.S. Census Bureau, Center for Economic Studies

Abstract: How much do workers making job-to-job transitions benefit from moving away from a shrinking and towards a growing firm? We show that earnings growth in the transition increases with net employment growth at the destination firm and, to a lesser extent, decreases if the origin firm is shrinking. So, we sum the effect of leaving a shrinking and entering a growing firm and remove the excess turnover-related hires because gross hiring has a much smaller association with earnings growth than net employment growth. We find that job-to-job transitions with the cross-firm job flow have 23% more earnings growth than average.

Pages: 28 pages
Date: 2020-04
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Citations: View citations in EconPapers (1)

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https://www2.census.gov/ces/wp/2020/CES-WP-20-15.pdf First version, 2020 (application/pdf)

Related works:
Journal Article: Earnings growth, job flows and churn (2023)
Working Paper: Earnings Growth, Job Flows and Churn (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:20-15

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