Age-Specific Cyclical Effects in Job Reallocation and Labor Mobility

34 Pages Posted: 21 Jul 2005

See all articles by Anne C. Gielen

Anne C. Gielen

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Jan C. van Ours

Tilburg University - Department of Economics; University of Melbourne - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: July 2005

Abstract

We present an empirical analysis of job reallocation and labor mobility using matched worker-firm data for the Netherlands to investigate how firms adjust their workforce over the cycle. Our data cover the period 1993-2002. We find that cyclical adjustments of the workforce occur mainly through fluctuations in job creation for young and prime-age workers while for old workers they occur mainly through fluctuations in job destruction. Moreover, we find that business cycle fluctuations are used to rejuvenate the workforce. Workforce reductions are most harmful for old workers; for them the flow out of employment is a one-way street.

Keywords: job creation, job destruction, accessions, separations, matched worker-firm data

JEL Classification: J23, J62, J63

Suggested Citation

Gielen, Anne C. and van Ours, Jan C., Age-Specific Cyclical Effects in Job Reallocation and Labor Mobility (July 2005). IZA Discussion Paper No. 1670, Available at SSRN: https://ssrn.com/abstract=761644 or http://dx.doi.org/10.2139/ssrn.761644

Anne C. Gielen (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

Jan C. Van Ours

Tilburg University - Department of Economics ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 466 2880 (Phone)
+31 13 466 3042 (Fax)

University of Melbourne - Department of Economics ( email )

Melbourne, 3010
Australia

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