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Demand for LaborThe Neglected Side of the Market$
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Daniel S. Hamermesh and Corrado Giulietti

Print publication date: 2017

Print ISBN-13: 9780198791379

Published to Oxford Scholarship Online: March 2017

DOI: 10.1093/acprof:oso/9780198791379.001.0001

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Job Turnover and Labor Turnover: A Taxonomy of Employment Dynamics

Job Turnover and Labor Turnover: A Taxonomy of Employment Dynamics

(p.107) 6 Job Turnover and Labor Turnover: A Taxonomy of Employment Dynamics
Demand for Labor

Daniel S. Hamermesh

Daniel S. Hamermesh

Oxford University Press

We provide a unified discussion of the relations among flows of workers, changes in employment and changes in the number of jobs at the level of the firm. Using a nationally representative sample of Dutch firms in 1988 and 1990: 1) Nearly half of all hiring is by firms where employment is not growing; 2) Over half of all firing is by firms that are not contracting; 3) Most firing is by firms that are also hiring; 4) Flows of workers within firms are small compared to flows into and out of firms; and 5) Accounting for simultaneous creation and destruction of jobs within firms adds roughly 15 percent to estimates of economy-wide job creation and destruction. The results imply that macroeconomic fluctuations can have substantial effects beyond those indicated by net employment changes at the firm level.

Keywords:   Hiring, quits, firing, employment flows, job flows

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