Heterogeneity in the Cyclical Sensitivity of Job-to-Job Flows

26 Pages Posted: 21 Oct 2009

See all articles by Sandra Schaffner

Sandra Schaffner

RWI - Leibniz Institute for Economic Research

Date Written: July 2009


Although the cyclical aspects of worker reallocation are investigated in numerous studies, only scarce empirical evidence exists for Germany. Kluve, Schaffner, and Schmidt (2009) emphasize the heterogeneity of cyclical influences for different subgroups of workers, defined by age, gender and skills. This paper contributes to this literature by extending this analysis to job-to-job flows. In fact, job-to-job transitions are found to be the largest flows in the German labor market. The findings suggest that job-finding rates and job-to-job transitions are procyclical while separation rates are acyclical or even countercyclical. The empirical framework employed here allows demographic groups to vary in their cyclical sensitivity. In Germany, young workers have the highest transition rates into and out of employment and between different jobs. Additionally, these transitions are more volatile than those of medium-aged or old workers. By contrast, old workers experience low transition rates and less pronounced swings than the core group of medium-aged, medium-skilled men.

Keywords: Labor force, employment dynamics, worker flows, business cycle, worker heterogeneity, job-to-job

JEL Classification: E32, J63, J64, E24

Suggested Citation

Schaffner, Sandra, Heterogeneity in the Cyclical Sensitivity of Job-to-Job Flows (July 2009). Ruhr Economic Paper No. 118, Available at SSRN: https://ssrn.com/abstract=1491507 or http://dx.doi.org/10.2139/ssrn.1491507

Sandra Schaffner (Contact Author)

RWI - Leibniz Institute for Economic Research ( email )

Hohenzollernstr. 1-3
Essen, 45128

HOME PAGE: http://www.rwi-essen.de/schaffner

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