Worker Upgrading and the Business Cycle

Gross Worker Flows over the Business Cycle

We build a hybrid model of the aggregate labor market that features both standard labor supply forces and frictions in order to study the cyclical properties of gross worker flows across the three labor market states: employment, unemployment, and nonparticipation. Our goal is to assess the relative importance of frictions and labor supply in accounting for fluctuations in labor market outcomes...

Business Cycle Features In The Iranian Economy

Real Wages and the Business Cycle: Accounting for Worker and Firm Heterogeneity

Using a longitudinal matched employer-employee data set for Portugal over the 1986-2005 period, this study analyzes the heterogeneity in wages responses to aggregate labor market conditions for newly hired workers and existing workers. Controlling simultaneously for worker and firm specific effects, the results show that entry wages are much more procyclical than current wages. A one-point incr...

Worker Reallocation over the Business Cycle: The Importance of Job-to-Job Transitions

In this paper I study the prevalence and cyclicality of job-to-job transitions using two micro datasets that allow one to identify workers who move from one job to another without an intervening spell of unemployment. I find that job-to-job flows are vast. More than half of all prime-age full-time workers who separate from their employer between two monthly interviews are employed in the second...

Worker Reallocation over the Business Cycle: the Importance of Employer-to-employer Transitions

In this paper, I show that employer-to-employer transitions are not only pervasive in the U.S. labor market, making up 49% of all separations from employers over the past decade, but also are a critical component in understanding worker turnover over the business cycle. In fact, the shift in the composition of separations from employer-toemployer transitions to employment-to-unemployment transi...