Worker Flows and Job Flows: A Quantitative Investigation

36 Pages Posted: 9 Feb 2016

See all articles by Shigeru Fujita

Shigeru Fujita

Federal Reserve Bank of Philadelphia

Makoto Nakajima

Federal Reserve Bank of Philadelphia

Multiple version iconThere are 4 versions of this paper

Date Written: 2016-02-05

Abstract

This paper studies quantitative properties of a multiple-worker firm search/matching model and investigates how worker transition rates and job flow rates are interrelated. We show that allowing for job-to-job transitions in the model is essential to simultaneously account for the cyclical features of worker transition rates and job flow rates. Important to this result are the distinctions between the job creation rate and the hiring rate and between the job destruction rate and the layoff rate. In the model without job-to-job transitions, these distinctions essentially disappear, thus making it impossible to simultaneously replicate the cyclical features of both labor market flows.

Keywords: Job flows, Worker flows, Multiple-worker firm, and Search and matching

JEL Classification: E24, E32, J63, J64

Suggested Citation

Fujita, Shigeru and Nakajima, Makoto, Worker Flows and Job Flows: A Quantitative Investigation (2016-02-05). FRB of Philadelphia Working Paper No. 16-3, Available at SSRN: https://ssrn.com/abstract=2729663

Shigeru Fujita (Contact Author)

Federal Reserve Bank of Philadelphia ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States

Makoto Nakajima

Federal Reserve Bank of Philadelphia ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
28
Abstract Views
511
PlumX Metrics