Where Did They Go?

Abstract

We study individual job-separations and their associated destination states for all individualsin the private sector in Denmark for the period 1980 to 1995 and account for the cyclicalflows. We find that individual and workplace characteristics as well as business cycle effectsare important in explaining the individual behaviour. In policy simulations we look at theimpact on individual transitions. We find that structural and growth policies have differentimplications for the economy. Policy interventions with the purpose of preventing firmclosures are argued to be inefficient.

Keywords: job separations, transition probabilities, Business cycles

JEL Classification: J63, J65, E24