Monday, July 30, 2007

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[IWS] FRB: Employer-to-Employer Flows in the United States: Estimates Using Linked Employer-Employee Data [July 2007]

IWS Documented News Service
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Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations
-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor
---------------------- Stuart Basefsky
New York, NY 10016
-------------------------------Director, IWS News Bureau
________________________________________________________________________

Federal Reserve Board (FRB)
Finance and Economics Discussion Series

Employer-to-Employer Flows in the United States: Estimates Using Linked Employer-Employee Data [July 2007]
Melissa Bjelland, Bruce Fallick, John Haltiwanger, and Erika McEntarfer
2007-30
http://www.federalreserve.gov/pubs/feds/2007/200730/200730abs.html
or
http://www.federalreserve.gov/pubs/feds/2007/200730/200730pap.pdf
[full-text, 45 pages]


Abstract: We use administrative data linking workers and firms to study employer-to-employer flows. After discussing how to identify such flows in quarterly data, we investigate their basic empirical patterns. We find that the pace of employer-to-employer flows is high, representing about 4 percent of employment and 30 percent of separations each quarter. The pace of employer-to-employer flows is highly procyclical, and varies systematically across worker, job and employer characteristics. Our findings regarding job tenure and earnings dynamics suggest that for those workers moving directly to new jobs, the new jobs are generally better jobs; however, this pattern is highly procyclical. There are rich patterns in terms of origin and destination of industries. We find somewhat surprisingly that more than half of the workers making employer-to-employer transitions switch even broadly-defined industries (NAICS super-sectors).

Keywords: Employer-to-employer flows, jobs flows, worker flows, turnover
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Stuart Basefsky                   
Director, IWS News Bureau                
Institute for Workplace Studies 
Cornell/ILR School                        
16 E. 34th Street, 4th Floor             
New York, NY 10016                        
                                   
Telephone: (607) 255-2703                
Fax: (607) 255-9641                       
E-mail: smb6@cornell.edu                  
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