The Cyclicality of Worker Flows: New Evidence from the Sipp
28 Pages Posted: 14 Feb 2007
Date Written: January 29, 2007
Abstract
Drawing on CPS data, the authors show that total monthly job loss and hiring among U.S. workers, as well as job loss hazard rates, are strongly countercyclical, while job finding hazard rates are strongly procyclical. They also find that total job loss and job loss hazard rates lead the business cycle, while total hiring and job finding rates trail the cycle. In the current paper the authors use information from the Survey on Income and Program Participation (SIPP) to reevaluate these findings. SIPP data are used to construct new longitudinally consistent gross flow series for U.S. workers, covering 1983-2003. The results strongly validate the authors' findings, with two important exceptions: (1) total hiring leads the cycle in the SIPP data, and (2) the job loss rate is substantially more volatile than the job finding rate at business cycle frequencies.
Keywords: Job loss, Hiring, SIPP worker flows
JEL Classification: J63, J64
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Incentives in Competitive Search Equilibrium
By Espen R. Moen and Asa Rosen
-
The Cyclical Behavior of Equilibrium Unemployment and Vacancies Revisited
By Marcus Hagedorn and Iourii Manovskii
-
The Cyclical Behavior of Equilibrium Unemployment and Vacancies: Evidence and Theory
-
Incentives in Competitive Search Equilibrium and Wage Rigidity
By Espen R. Moen and Asa Rosen
-
Incentives in Competitive Search Equilibrium and Wage Rigidity
By Espen R. Moen and Asa Rosen
-
Search-Theoretic Models of the Labor Market: A Survey
By Richard Rogerson and Randall Wright
-
Search-Theoretic Models of the Labor Market-A Survey
By Richard Rogerson, Robert Shimer, ...
-
Unemployment Fluctuations with Staggered Nash Wage Bargaining
By Mark Gertler and Antonella Trigari
-
Employer-to-Employer Flows in the U.S. Labor Market: The Complete Picture of Gross Worker Flows