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Labor market anxiety and the downward trend in the job separation rate

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  • Shigeru Fujita

Abstract

Anecdotal evidence suggests that labor market conditions surrounding American workers had been worsening in recent decades, even before the severe recession in 2007-2009. However, studies by academic researchers have not found clear evidence that worker turnover has increased over time. In this article, Shigeru Fujita shows that there is a long-run downward trend in the separation rate into unemployment and examines several factors that help account for this long-run decline. He argues that the aging of the labor force has played an important role in the trend. He also explains, using an economic model, how the declining separation rate can result from workers? response to the increased sense of job insecurity.

Suggested Citation

  • Shigeru Fujita, 2012. "Labor market anxiety and the downward trend in the job separation rate," Business Review, Federal Reserve Bank of Philadelphia, issue Q4, pages 1-7.
    • Handle: RePEc:fip:fedpbr:y:2012:i:q4:p:1-7
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    References listed on IDEAS

    as
    1. Fujita, Shigeru, 2018. "Declining labor turnover and turbulence," Journal of Monetary Economics, Elsevier, vol. 99(C), pages 1-19.
    2. repec:pri:indrel:dsp01kw52j8087 is not listed on IDEAS
    3. Shigeru Fujita & Vilas Rao, 2009. "Earnings losses of job losers during the 2001 economic downturn," Business Review, Federal Reserve Bank of Philadelphia, issue Q4, pages 1-9.
    4. Neal, Derek, 1995. "Industry-Specific Human Capital: Evidence from Displaced Workers," Journal of Labor Economics, University of Chicago Press, vol. 13(4), pages 653-677, October.
    5. Wouter J. den Haan & Christian Haefke & Garey Ramey, 2005. "Turbulence And Unemployment In A Job Matching Model," Journal of the European Economic Association, MIT Press, vol. 3(6), pages 1360-1385, December.
    6. Henry S. Farber, 2011. "Job Loss in the Great Recession: Historial Perspective from the Displaced Workers Survey, 1984-2010," Working Papers 1309, Princeton University, Department of Economics, Industrial Relations Section..
    7. Henry S. Farber, 2011. "Job Loss in the Great Recession: Historical Perspective from the Displaced Workers Survey, 1984-2010," NBER Working Papers 17040, National Bureau of Economic Research, Inc.
    8. Farber, Henry S, 2011. "Job Loss in the Great Recession: Historical Perspective from the Displaced Workers Survey, 1984-2010," IZA Discussion Papers 5696, Institute of Labor Economics (IZA).
    9. Shigeru Fujita, 2007. "What do worker flows tell us about cyclical fluctuations in employment?," Business Review, Federal Reserve Bank of Philadelphia, issue Q2, pages 1-10.
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