The decline in job-to-job flows

Hyatt, Henry

doi:10.15185/izawol.175

Cited by 8 publications

(2 citation statements)

References 9 publications

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“…Indeed, empirical studies show that young workers tend to be more mobile in terms of job-to-job transitions than prime-age workers (Causa et al, 2021). As the share of younger workers declines due to population ageing, job-to-job transitions, which are an important adjustment channel with respect to labour imbalances, are likely to decrease in the long run (Hyatt, 2015). 2 As a consequence, fewer job switchers will be available to fill open jobs than in the past.…”

Section: Forummentioning

confidence: 99%

Tomorrow at Work: The Age of Shortages

Ernst,

Feist

2024

Intereconomics

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Section: Forummentioning

confidence: 99%

Tomorrow at Work: The Age of Shortages

Ernst,

Feist

2024

Intereconomics

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“…Another set of studies has focused on the declining trend in labor market dynamism. For example, Hyatt (2015) shows that the rate at which workers switch jobs has been trending down over the last few decades. Hiring and job creation rates have also been declining.…”

Section: Introductionmentioning

confidence: 99%

Occupational Licensing and Labor Market Fluidity

Kleiner,

2024

Journal of Labor Economics

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We show that occupational licensing has significant negative effects on labor market fluidity defined as cross-occupation mobility. Using a balanced panel of workers constructed from the CPS and SIPP data, we analyze the link between occupational licensing and labor market outcomes. We find that workers with a government-issued occupational license experience churn rates significantly lower than those of non-licensed workers. Specifically, licensed workers are 24% less likely to switch occupations and 3% less likely to become unemployed in the following year. Moreover, occupational licensing represents barriers to entry for both non-employed workers and employed ones. The effect is more prominent for employed workers relative to those entering from nonemployment, because the opportunity cost of acquiring a license is much higher for employed individuals. Lastly, we find that average wage growth is higher for licensed workers than non-licensed workers, whether they stay in the same occupation in the next year or switch occupations. We find significant heterogeneity in the licensing effect across different occupation groups. These results hold across various data sources, time spans, and indicators of being licensed. Overall, licensing could account for almost 8% of the total decline in monthly occupational mobility over the past two decades.

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Job Mobility and Wealth Inequality

Applegate

Janssen

2020

Comput Econ

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The extent to which employees change jobs, known as the job mobility rate, has been steadily declining in the US for decades. This decline is understood to have a negative impact on both productivity and wages, and econometric studies fail to support any single cause brought forward. This decline coincides with decreases in household savings, increases in household debt and wage stagnation. We propose that the decline could be the consequence of a complex interaction between mobility, savings, wages and debt, such that if changing jobs incurs costs which are paid out of savings, or incurs debt in the absence of sufficient savings, a negative feedback loop is generated. People are further restricted in making moves by their debt obligations and inability to save, which in turn depresses wages further. To explore this hypothesis, we developed a stylized model in which agents chose their employment situation based on their opportunities and preferences for work and where there are costs to changing jobs and the possibility of borrowing to meet those costs. We indeed found evidence of a negative feedback loop involving changes, wages, savings and debt, as well as evidence that this dynamic results in a level of wealth inequality on the same scale as we see today in the US.

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The decline in job-to-job flows

Cited by 8 publications

References 9 publications

Tomorrow at Work: The Age of Shortages

Tomorrow at Work: The Age of Shortages

Occupational Licensing and Labor Market Fluidity

Job Mobility and Wealth Inequality

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