Worker Turnover, Industry Localization, and Producer Size

FRB of St. Louis Working Paper No. 2004-021A

25 Pages Posted: 26 Jul 2005

See all articles by Christopher H. Wheeler

Christopher H. Wheeler

Federal Reserve Bank of St. Louis - Research Division

Date Written: September 2004

Abstract

Empirically, large employers have been shown to devote greater resources to filling vacancies than small employers. Following this evidence, this paper offers a theory of producer size based on labor market search, whereby a key factor in the determination of producer's total employment is the ease with which workers can be found to fill jobs that are, periodically, vacated. Since the geographic localization of industry has long been conjectured to facilitate the search process, the model provides an explanation for the observed positive association between average producer size and the magnitude of an industry's presence within local labor markets.

Suggested Citation

Wheeler, Christopher H., Worker Turnover, Industry Localization, and Producer Size (September 2004). FRB of St. Louis Working Paper No. 2004-021A , Available at SSRN: https://ssrn.com/abstract=760465 or http://dx.doi.org/10.2139/ssrn.760465

Christopher H. Wheeler (Contact Author)

Federal Reserve Bank of St. Louis - Research Division

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