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Worker inflow, outflow, and churning

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  • Pekka Ilmakunnas
  • Mika Maliranta

Abstract

Linked employer-employee data from Finnish business sector is used in analysing worker turnover. The data set is an unbalanced panel with over 219 000 observations in 1991-97. The churning (excess worker turnover), worker inflow, and worker outflow rates are explained by plant and employee characteristics. The probabilities of observing non-zero churning, inflow, and outflow rates increase with plant size. The magnitudes of the non-zero churning and inflow rates depend positively on size, but the magnitude of outflow rate depends negatively on size. High-wage plants have low turnover; plants with large within-plant variation in wages have high turnover. Average tenure of employees has a negative impact on turnover. High plant employment growth increases churning and separation but reduces hiring in the next year. Also controlled are average age and education of employees, shares of women and homeowners among employees, foreign ownership, ownership changes, and regional unemployment.

Suggested Citation

  • Pekka Ilmakunnas & Mika Maliranta, 2005. "Worker inflow, outflow, and churning," Applied Economics, Taylor & Francis Journals, vol. 37(10), pages 1115-1133.
    • Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1115-1133
    DOI: 10.1080/00036840500109621
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    Cited by:

    1. Petri Böckerman & Mika Maliranta, 2013. "Outsourcing, Occupational Restructuring, and Employee Well-Being: Is There a Silver Lining?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(4), pages 878-914, October.
    2. Philippe Askenazy & Eva Moreno Galbis, 2007. "The Impact of Technological and Organizational Changes on Labor Flows. Evidence on French Establishments," LABOUR, CEIS, vol. 21(2), pages 265-301, June.
    3. Pekka Ilmakunnas & Seija Ilmakunnas, 2012. "Age segregation and hiring of older employees: low mobility revisited," Working Papers 273, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    4. Tsou, Meng-Wen & Liu, Jin-Tan, 2005. "Wage dispersion and employment turnover in Taiwan," Economics Letters, Elsevier, vol. 88(3), pages 408-414, September.
    5. Alpysbayeva, Dinara & Vanormelingen, Stijn, 2022. "Labor market rigidities and misallocation: Evidence from a natural experiment," Labour Economics, Elsevier, vol. 78(C).
    6. Liis Roosaar & Urmas Varblane & Jaan Masso, 2020. "Productivity Gains From Labour Churning In Economic Crisis: Do Foreign Firms Gain More?," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 125, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    7. Maliranta, Mika, 2005. "Foreign-owned Firms and Productivity-enhancing Restructuring in Finnish Manufacturing Industries," Discussion Papers 965, The Research Institute of the Finnish Economy.
    8. Maliranta, Mika, . "Micro Level Dynamics of Productivity Growth. An Empirical Analysis of the Great Leap in Finnish Manufacturing Productivity in 1975-2000," ETLA A, The Research Institute of the Finnish Economy, number 38, June.
    9. Pekka Ilmakunnas & Seija Ilmakunnas, 2014. "Age segregation and hiring of older employees: low mobility revisited," International Journal of Manpower, Emerald Group Publishing Limited, vol. 35(8), pages 1090-1115, October.
    10. Omar A Guerrero & Robert L Axtell, 2013. "Employment Growth through Labor Flow Networks," PLOS ONE, Public Library of Science, vol. 8(5), pages 1-12, May.
    11. Pedro S. Martins, 2008. "Worker Churning and Firms’ Wage Policies," Working Papers 13, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    12. Peter Huber & Harald Oberhofer & Michael Pfaffermayr, 2012. "Who Creates Jobs? Estimating Job Creation Rates at the Firm Level," WIFO Working Papers 435, WIFO.
    13. Askenazy, Philippe & Moreno-Galbis, Eva, 2007. "Technological and Organizational Changes, and Labor Flows: Evidence on French Establishments," IZA Discussion Papers 2549, Institute of Labor Economics (IZA).

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