Creative destruction with on-the-job search

Michau, Jean-Baptiste

doi:10.1016/j.red.2012.10.011

Cited by 14 publications

(6 citation statements)

References 19 publications

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“…What is more plausible is the idea that in recessions, there may be fewer opportunities for productivity growth through reallocation across sectors of the economy. We think recent search and matching models that include on-the-job search, such as Michau (2013) and Miyamoto and Takahashi (2011), could be helpful frameworks for further understanding the declines we document.…”

Section: Vb Job Matching and Employment Dynamicsmentioning

confidence: 98%

The recent decline in employment dynamics

2013

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Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract We document and attempt to explain the recent decline in employment dynamics in the U.S. We have four major empirical findings. First, each measure exhibits a "stair step" pattern, with the declines concentrated in recessions and little increase during subsequent expansions. Second, changes in the composition of workers and businesses can explain only a small amount of the decline. Third, any explanation for the decline in job creation and job destruction will account for no more than one-third of the decline in hires and separations. Fourth, the decline in hires and separations is driven by the disappearance of short-duration jobs. JEL Codes: E24, J63

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Section: Vb Job Matching and Employment Dynamicsmentioning

confidence: 98%

The recent decline in employment dynamics

2013

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“…7 I introduce three key novelties to these earlier works. First, as in Michau (2013), I allow for on-the-job search, motivated by the dual observations that job-to-job mobility is a critical component of life cycle career dynamics (Topel and Ward, 1992), and that it has declined substantially over the past decades. Second, I model technological innovation as endogenously determined by the selection process associated with entry and exit, building on a vast literature stretching back to Schumpeter (1942).…”

Section: 3mentioning

confidence: 99%

Firm and Worker Dynamics in an Aging Labor Market

Engbom¹

2019

Preprint

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I develop an idea flows theory of firm and worker dynamics in order to assess the consequences of population aging. Older people are less likely to attempt entrepreneurship and switch employers because they have found better jobs. Consequently, aging reduces entry and worker mobility through a composition effect. In equilibrium, the lower entry rate implies fewer new, better job opportunities for workers, while the better matched labor market dissuades job creation and entry. Aging accounts for a large share of substantial declines in firm and worker dynamics since the 1980s, primarily due to equilibrium forces. Cross-state evidence supports these predictions.

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“…A more realistic framework should allow them to search on the job or train themselves to improve their relative productivity and avoid job destruction. Michaud (2007) has already shown that the predictive capacity of the Mortensen and Pissarides (1998) model is considerably improved when introducing on-the-job search 2 . An alternative approach proposed in our paper involves introducing human capital issues in the style of Ljunqvist and Sargent (2008) 3 .…”

Section: Introductionmentioning

confidence: 99%

The impact of TFP growth on the unemployment rate: Does on-the-job training matter?

Galbis

2012

European Economic Review

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This paper seeks to gain insights into the relationship between growth and unemployment in a setting with heterogeneous skills, human capital accumulation, on-the-job training and capital-skill complementarity. We use an endogenous job destruction framework in the style of Mortensen and Pissarides (1998) with directed search. We show that, when growth accelerates, a larger share of unskilled workers seeks training, increasing firms' incentives to update job-specific technology (rather than destroying it). By magnifying the impact of growth on employment, the introduction of human capital issues allows the model to more closely match the estimated sensitivity of unemployment with respect to growth. When calibrated, the model manages to reproduce the aggregate capitalization effect estimated using OECD data. We find that growth reduces unemployment for individuals receiving training, while it increases the unemployment rate of unskilled workers without training (creative destruction effect).

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Creative destruction with on-the-job search

Cited by 14 publications

References 19 publications

The recent decline in employment dynamics

The recent decline in employment dynamics

Firm and Worker Dynamics in an Aging Labor Market

The impact of TFP growth on the unemployment rate: Does on-the-job training matter?

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