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Labour flows across firm´s size, economic sectors and wages in Colombia: evidence from employer-employee linked panel

Author

Listed:
  • Luz Adriana Flórez

    (Banco de la República de Colombia)

  • Leonardo Morales Z

    (Banco de la República de Colombia)

  • Daniel Medina
  • José Lobo C

    (Universidad Nacional de Colombia)

Abstract

This paper explores the behavior of Colombia labour market flows. We focus on job creation and job destruction from the plant´s perspective, and on hiring and separations from the worker´s point of view.We show how these labour flows change across different dimensions such as, firm’s size, economic sectors, as well as wages and present the dynamic of tenure across these dimensions. Our results are in line with those of Birch (1981) and more recently Neumark, Wall, and Zhang (2008), who found that small firms are the ones who created Jobs in the economy. We found that small firms have higher job and worker reallocation rates; and firms especially those with less than 50 employees are the ones with a higher employment growth rates compared to the larger ones. Moreover, we found that construction presents the highest labour flows, while manufacture the lowest. Finally, we found a negative relation between firm´s average wages and labour flows. Classification JEL: E24, J63, M50

Suggested Citation

  • Luz Adriana Flórez & Leonardo Morales Z & Daniel Medina & José Lobo C, 2017. "Labour flows across firm´s size, economic sectors and wages in Colombia: evidence from employer-employee linked panel," Borradores de Economia 1013, Banco de la Republica de Colombia.
    • Handle: RePEc:bdr:borrec:1013
    DOI: 10.32468/be.1013
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Luz A. Flórez & Leidy Gómez D., 2019. "Skill mismatch and labour turnover in a developing country: the Colombian case," Borradores de Economia 1099, Banco de la Republica de Colombia.
    2. Leonardo Fabio Morales & José Lobo, 2017. "Estimating Vacancies from Firms’ Hiring behavior: The Case of a Developing Economy," Borradores de Economia 1017, Banco de la Republica de Colombia.
    3. Deicy J. Cristiano-Botia & Manuel Dario Hernandez-Bejarano & Mario A. Ramos-Veloza, 2021. "Labor Market Indicator for Colombia (LMI)," Borradores de Economia 1152, Banco de la Republica de Colombia.
    4. Leonardo Fabio Morales & Didier Hermida & Eleonora Dávalos, 2019. "Interactions between Formal and Informal Labor Dynamics: Revealing Job Flows from Household Surveys," Borradores de Economia 1090, Banco de la Republica de Colombia.

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    More about this item

    Keywords

    Job creation; Job destruction; Hiring; Separations; Firm´s size; Churning; Wages; Tenure.;
    All these keywords.

    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
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General

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