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Worker turnover and job reallocation in Taiwanese manufacturing

Author

Listed:
  • Meng-Wen Tsou
  • Jin-Tan Liu
  • James Hammitt

Abstract

The paper examines time-series patterns of job and worker flows in a newly industrializing economy (NIE). Using plant-level data from the Taiwan manufacturing sector, the cyclical behaviour of job reallocation and its relation with worker turnover is analysed. It is found that job reallocation and labour turnover are procyclical, at both the aggregate and (two-digit) industry levels. The share of worker turnover caused by gross job reallocation is 17%, suggesting the majority of observed worker turnover reflects rotations of positions that are neither created or destroyed. There is substantial heterogeneity in plant-specific job and worker turnover patterns. Job creation and job destruction rates are higher among small plants and private-sector plants. The private plants are more dynamic than public plants in terms of worker turnover. Controlling for year and industry effects, it is found that job creation and worker turnover are both higher in export-oriented industries.

Suggested Citation

  • Meng-Wen Tsou & Jin-Tan Liu & James Hammitt, 2002. "Worker turnover and job reallocation in Taiwanese manufacturing," Applied Economics, Taylor & Francis Journals, vol. 34(4), pages 401-411.
    • Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:401-411
    DOI: 10.1080/00036840110046016
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    References listed on IDEAS

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    1. Jonathan S. Leonard, 1986. "On the Size Distribution of Employment and Establishments," NBER Working Papers 1951, National Bureau of Economic Research, Inc.
    2. Bee Yan Aw & Xiaomin Chen & Mark J. Roberts, 1997. "Firm-level Evidence on Productivity Differentials, Turnover, and Exports in Taiwanese Manufacturing," NBER Working Papers 6235, National Bureau of Economic Research, Inc.
    3. Daniel S. Hamermesh & Wolter H. J. Hassink & Jan C. van Ours, 1994. "New Facts About Factor-Demand Dynamics: Employment, Jobs, and Workers," NBER Working Papers 4625, National Bureau of Economic Research, Inc.
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    Cited by:

    1. De-Chih Liu, 2010. "Job creation and destruction by region in Taiwan," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 44(1), pages 167-184, February.
    2. Tsou, Meng-Wen & Liu, Jin-Tan, 2005. "Wage dispersion and employment turnover in Taiwan," Economics Letters, Elsevier, vol. 88(3), pages 408-414, September.
    3. Neil Foster-McGregor, 2012. "Innovation and Technology Transfer across Countries," wiiw Research Reports 380, The Vienna Institute for International Economic Studies, wiiw.
    4. Liu, De-Chih, 2006. "The entry and exit of workers in Taiwan," Economics Letters, Elsevier, vol. 92(3), pages 330-332, September.
    5. De-Chih Liu, 2010. "Monetary policy and the asymmetric job creation and destruction behaviour," Applied Economics Letters, Taylor & Francis Journals, vol. 17(8), pages 773-780.
    6. Tsou, Meng-Wen & Liu, Jin-Tan & Hammitt, James K. & Chang, Ching-Fu, 2013. "The impact of foreign direct investment in China on employment adjustments in Taiwan: Evidence from matched employer–employee data," Japan and the World Economy, Elsevier, vol. 25, pages 68-79.

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