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Time and space aggregation of the labor market flows

Katarina Borovickova
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Katarina Borovickova: New York University

No 1338, 2013 Meeting Papers from Society for Economic Dynamics

Abstract: I present new empirical evidence on the relationship between the job flows, worker flows, and the time horizon at which these flows are measured. In particular, I show that worker flows grow linearly with the horizon at which they are measured; job flows grow approximately with the square root of the horizon. Further, I show that these patterns hold for all firm size categories separately, and that the magnitude of the job and worker flows decreases with employer's size. To interpret these patterns, I explore simple models of a representative firm which faces employment adjustment costs. I show that such a model can replicate some of the observed patterns. I discuss the implications of presented facts for interpreting the differences in the characteristics of the labor markets in Europe and the U.S.

Date: 2013
New Economics Papers: this item is included in nep-dge and nep-ger
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed013:1338

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