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The Reallocation of Labour and the Lifecycle of Firms

Simon Burgess (), Julia Lane and David Stevens

No 1713, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper uses a unique panel dataset of firms and workers to investigate the relationship between the firm’s lifecycle and the reallocation of labour. We distinguish labour reallocation associated with job reallocation, and reallocation of workers over a fixed configuration of jobs. We find that firms at the beginning and end of their lifecycles contribute disproportionately to labour market flows, with sorting between firms particularly important among young firms, whereas sorting within firms is more important among mature firms. We also find that high churning flows are associated with a lower probability of a young firm surviving.

Keywords: Death of Firms; Job Reallocation; Lifecycle of Firms; Worker Reallocation (search for similar items in EconPapers)
JEL-codes: J60 J63 L2 (search for similar items in EconPapers)
Date: 1997-10
References: Add references at CitEc
Citations: View citations in EconPapers (7)

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