Worker Churn and Employment Growth at the Establishment Level

Ruediger Bachmann, Christian Bayer, Christian Merkl, Stefan Seth (), Heiko Stüber and Felix Wellschmied
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Stefan Seth: Institute for Employment Research (IAB), Nuremberg

No 11063, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We study the relationship between employment growth and worker flows in excess of job flows (churn) at the establishment level using the new German AWFP dataset spanning from 1975–2014. Churn is above 5 percent of employment along the entire employment growth distribution and most pronounced at rapidly-adjusting establishments. We find that the patterns of churn along the employment growth distribution can be explained by separation rate shocks and time-to-hire frictions. These shocks become larger on average during boom periods leading to procyclical worker churn. Distinguishing between separations into non-employment and to other establishments, we find that separations to other establishments drive all procyclical churn. In a secondary contribution, we compare German worker and job flows with their US counterparts and recent US findings.

Keywords: job-to-job transitions; churn; worker flows; job flows; aggregate fluctuations (search for similar items in EconPapers)
JEL-codes: E20 E24 E32 J23 J63 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2017-10
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (2)

Published - published in: Journal of Monetary Economics, 2021, 117, 781-797

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Working Paper: Worker Churn and Employment Growth at the Establishment Level (2017)
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