Heterogeneity in the cyclical sensitivity of job-to-job flows
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Date
2009-08-05T10:04:43Z
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Abstract
Although the cyclical aspects of worker reallocation are investigated in numerous studies, only scarce empirical evidence exists for Germany. Kluve, Schaffner, and Schmidt (2009) emphasize the heterogeneity
of cyclical influences for different subgroups of workers, defined by age, gender and skills. This paper contributes to this literature by extending this analysis to job-to-job flows. In fact, job-to-job transitions are found to be the largest flows in the German labor market.
The findings suggest that job-finding rates and job-to-job transitions
are procyclical while separation rates are acyclical or even countercyclical.
The empirical framework employed here allows demographic
groups to vary in their cyclical sensitivity. In Germany, young workers
have the highest transition rates into and out of employment and between
different jobs. Additionally, these transitions are more volatile
than those of medium-aged or old workers. By contrast, old workers
experience low transition rates and less pronounced swings than the
core group of medium-aged, medium-skilled men. JEL Codes: E32, J63, J64, E24
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business cycle, employment dynamics, job-to-job, labor force, worker flows, worker heterogeneity