Alternative Ways of Measuring and Interpreting Worker Flows

Carlos Corseuil

MPRA Paper from University Library of Munich, Germany

Abstract: The present paper provides empirical evidence compatible with a proposed theoretical framework to explain the joint determination of two components of worker flows: worker replacement and job creation. We show that a negative correlation between job creation and replacement across firms emerges from such a framework. An empirical model is specified and its parameters are estimated taking into account two serious problems: measurement error and endogenous regressor. We take advantage of a matched employer-employee longitudinal database with detailed information on job and worker characteristics to tackle both issues. Our estimates confirm the negative correlation predicted by the theory.

Keywords: job flows; replacement; employment dynamics (search for similar items in EconPapers)
JEL-codes: J23 J63 (search for similar items in EconPapers)
Date: 2009-07
New Economics Papers: this item is included in nep-lab, nep-lam and nep-mic
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:16158

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