Heterogeneous Worker Flows and Japan's Labor Market

This paper presents new estimates of gross worker flows for Canada for the sample period 1978 to 2016. We use administrative data from the Canadian Record of Employment in combination with the Canadian Labor Force Survey to estimate employer-to-employer flows in addition to flows between labor market states. We highlight three main results: Roughly two-thirds of all job separations are employer-to-employer flows. Employer-to-Employer flows are highly procyclical. The combination of these two results means that total job separations are procyclical. If employer-to-employer flows improve match quality, our results imply that recessions have a sullying effect on the labor market.

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The Evolution of Multiple Jobholding in the U.S. Labor Market: The Complete Picture of Gross Worker Flows

SSRN Electronic Journal ◽

10.2139/ssrn.2868321 ◽

2016 ◽

Author(s):

Etienne Lalé

Keyword(s):

Labor Market ◽

Complete Picture ◽

Worker Flows ◽

The U.S

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Temporary Workers in Canada: A Multifaceted Program

International Migration Review ◽

10.1177/019791838602000410 ◽

1986 ◽

Vol 20 (4) ◽

pp. 929-950 ◽

Cited By ~ 4

Author(s):

Monica Boyd ◽

Chris Taylor ◽

Paul Delaney

Keyword(s):

Labor Market ◽

Policy Implications ◽

Temporary Workers ◽

Market Impact ◽

Temporary Worker ◽

Worker Flows ◽

Refugee Claimants ◽

Labor Recruitment

This article highlights important developments in the character of temporary worker flows to Canada between 1973 and 1985 through the use of unpublished data and new measures for analyzing this data. The number of employment authorizations are converted to person years to indicate the overall labor market impact of temporary worker flows and this measure is employed in an analysis of unpublished data from Employment and Immigration Canada. The analysis reveals that a significant and growing proportion of employment authorizations are exempted from governmental procedures which link the admission of temporary workers to the Canadian labor market. In many cases, these exempt documents are being authorized for social and humanitarian programs (e.g., refugee claimants, in-Canada immigrant claimants). As a result, the actual “labor recruitment” component of these authorizations is considerably less than interpreted from published statistics of employment authorizations. The policy implications of these findings are discussed.

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Frictional Wage Dispersion in Search Models: A Quantitative Assessment

The American Economic Review ◽

10.1257/aer.101.7.2873 ◽

2011 ◽

Vol 101 (7) ◽

pp. 2873-2898 ◽

Cited By ~ 97

Author(s):

Andreas Hornstein ◽

Per Krusell ◽

Giovanni L Violante

Keyword(s):

Labor Market ◽

Large Class ◽

Job Search ◽

Quantitative Assessment ◽

Search Model ◽

Wage Dispersion ◽

Search Models ◽

Worker Flows ◽

Wage Ratio ◽

Structural Search

We propose a new measure of frictional wage dispersion: the meanmin wage ratio. For a large class of search models, we show that this measure is independent of the wage-offer distribution but depends on statistics of labor-market turnover and on preferences. Under plausible preference parameterizations, observed magnitudes for worker flows imply that in the basic search model, and in most of its extensions, frictional wage dispersion is very small. Notable exceptions are some of the most recent models of on-the-job search. Our new measure allows us to rationalize the diverse empirical findings in the large literature estimating structural search models. (JEL D81, D83, J31, J41, J64)

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Firm Dynamics, On-the-Job Search and Labor Market Fluctuations

The Review of Economic Studies ◽

10.1093/restud/rdab054 ◽

2021 ◽

Author(s):

Michael W L Elsby ◽

Axel Gottfries

Keyword(s):

Labor Market ◽

Job Search ◽

Market Competition ◽

Labor Demand ◽

Firm Dynamics ◽

Negative Association ◽

Marginal Product ◽

Worker Flows ◽

Fundamental Challenge ◽

Rent Sharing

Abstract We devise a tractable model of firm dynamics with on-the-job search. The model admits analytical solutions for equilibrium outcomes, including quit, layoff, hiring and vacancy-filling rates, as well as the distributions of job values, a fundamental challenge posed by the environment. Optimal labor demand takes a novel form whereby hiring firms allow their marginal product to diffuse over an interval. The evolution of the marginal product over this interval endogenously exhibits gradual mean reversion, evoking a notion of imperfect labor market competition. This in turn contributes to dispersion in marginal products, giving rise to endogenous misallocation. Quantitatively, the model provides a parsimonious reconciliation of leading estimates of rent sharing, the negative association between wages and quits, the link between job and worker flows, and the cyclicality of labor market quantities and prices.

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Marginal Jobs, Heterogeneous Firms, and Unemployment Flows

American Economic Journal Macroeconomics ◽

10.1257/mac.5.1.1 ◽

2013 ◽

Vol 5 (1) ◽

pp. 1-48 ◽

Cited By ~ 37

Author(s):

Michael W. L Elsby ◽

Ryan Michaels

Keyword(s):

Labor Market ◽

Cross Section ◽

Employment Growth ◽

Heterogeneous Firms ◽

Job Destruction ◽

Worker Flows ◽

Cyclical Fluctuations ◽

Search And Matching Model ◽

The Business Cycle ◽

Aggregate Dynamics

This paper introduces a notion of firm size into a search and matching model with endogenous job destruction. The outcome is a rich, yet analytically tractable framework that can be used to analyze a broad set of features of both the cross-section and aggregate dynamics of the labor market. The model provides a coherent account of the distributions of employer size and employment growth across establishments, the amplitude and propagation of cyclical fluctuations in worker flows, the negative comovement of unemployment and vacancies, and the dynamics of the distribution of employer size over the business cycle. (JEL E24, E32, J63, J64)

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Earnings Losses and Labor Mobility Over the Life Cycle

Journal of the European Economic Association ◽

10.1093/jeea/jvy014 ◽

2018 ◽

Vol 17 (3) ◽

pp. 678-724 ◽

Cited By ~ 7

Author(s):

Philip Jung ◽

Moritz Kuhn

Keyword(s):

Labor Market ◽

Life Cycle ◽

Job Stability ◽

Earnings Dynamics ◽

Worker Flows ◽

Dislocated Worker ◽

Earnings Losses ◽

Main Driver ◽

Large Worker ◽

The Individual

Abstract Large and persistent earnings losses following displacement have adverse consequences for the individual worker and the macroeconomy. Leading models cannot explain their size and disagree on their sources. Two mean-reverting forces make earnings losses transitory in these models: search as an upward force allows workers to climb back up the job ladder, and separations as a downward force make nondisplaced workers fall down the job ladder. We show that job stability at the top rather than search frictions at the bottom is the main driver of persistent earnings losses. We provide new empirical evidence on heterogeneity in job stability and develop a life-cycle search model to explain the facts. Our model offers a quantitative reconciliation of key stylized facts about the U.S. labor market: large worker flows, a large share of stable jobs, and persistent earnings shocks. We explain the size of earnings losses by dampening the downward force. Our new explanation highlights the tight link between labor market mobility and earnings dynamics. Regarding the sources, we find that over 85% stem from the loss of a particularly good job at the top of the job ladder. We apply the model to study the effectiveness of two labor market policies, retraining and placement support, from the Dislocated Worker Program. We find that both are ineffective in reducing earnings losses in line with the program evaluation literature.

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