Earnings Growth, Job Flows and Churn

Satoshi Tanaka, Lawrence Warren and David Wiczer

Department of Economics Working Papers from Stony Brook University, Department of Economics

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. This implies job-to-job transitions with the cross-firm job flow have 23% more earnings growth than average. This balances the negative effect from leaving a shrinking firm against the positive from going to a growing firm and removes turnover-related hires because gross hiring has a much smaller association with earnings than net employment growth.

Date: 2020
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Citations: View citations in EconPapers (3)

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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:nys:sunysb:20-03

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