DP1125 Job Flows, Worker Flows and Churning

Author(s): Simon Burgess, Julia Lane, David Stevens
Publication Date: February 1995
Keyword(s): Gross Job Flows, Labour Reallocation, Worker Flows
JEL(s): E32, J23, J63
Programme Areas: Human Resources
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=1125

We utilize a large firm-level panel dataset to explore the links between gross job flows and gross worker flows. Our findings have relevance for models of job creation and destruction, of labour reallocation and of employment adjustment costs. We find churning flows (the difference between worker and job flows at the firm) to be high, pervasive, and highly persistent over time within firms. We find the dynamic relationship between job and worker flows to be quite complex: lagged job flows raise churning flows, but the effect of churning flows on job flows is asymmetric.