Journal of Monetary Economics volume 59, issue 1, P1-18 2012 DOI: 10.1016/j.jmoneco.2011.10.001 View full text
Steven J. Davis, R. Jason Faberman, John Haltiwanger

Abstract: Many theoretical models of labor market search imply a tight link between worker flows (hires and separations) and job gains and losses at the employer level. Partly motivated by these theories, we exploit establishment-level data from U.S. sources to study the relationship between worker flows and job flows in the cross section and over time. We document strong, highly nonlinear relationships of hiring, quit and layoff rates to employer growth in the cross section. Simple statistical models that capture these…

expand abstract