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New Evidence on the Cyclicality of Employer-to-Employer Flows from Canada

Author

Listed:
  • Alice Nakamura
  • Emi Nakamura
  • Kyle Phong
  • Jón Steinsson

Abstract

This paper presents new estimates of gross worker flows for Canada for the sample period 1978 to 2016. We use administrative data from the Canadian Record of Employment in combination with the Canadian Labor Force Survey to estimate employer-to-employer flows in addition to flows between labor market states. We highlight three main results: Roughly two-thirds of all job separations are employer-to-employer flows. Employer-to-Employer flows are highly procyclical. The combination of these two results means that total job separations are procyclical. If employer-to-employer flows improve match quality, our results imply that recessions have a sullying effect on the labor market.

Suggested Citation

  • Alice Nakamura & Emi Nakamura & Kyle Phong & Jón Steinsson, 2019. "New Evidence on the Cyclicality of Employer-to-Employer Flows from Canada," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 456-460, May.
    • Handle: RePEc:aea:apandp:v:109:y:2019:p:456-60
    Note: DOI: 10.1257/pandp.20191053
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    Cited by:

    1. Serdar Birinci & Youngmin Park & Thomas Pugh & Kurt See, 2023. "Uncovering the Differences among Displaced Workers: Evidence from Canadian Job Separation Records," Working Papers 2023-022, Federal Reserve Bank of St. Louis, revised Oct 2023.

    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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