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Age-Specific Cyclical Effects in Job Reallocation and Labour Mobility

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  • van Ours, Jan C.
  • Gielen, Anne

Abstract

We present an empirical analysis of job reallocation and labour mobility using matched worker-firm data for the Netherlands to investigate how firms adjust their workforce over the cycle. Our data cover the period 1993-2002. We find that cyclical adjustments of the workforce occur mainly through fluctuations in job creation for young and prime-age workers while for old workers they occur mainly through fluctuations in job destruction. Moreover, we find that business cycle fluctuations are used to rejuvenate the workforce. Workforce reductions are most harmful for old workers; for them the flow out of employment is a one-way street.

Suggested Citation

  • van Ours, Jan C. & Gielen, Anne, 2005. "Age-Specific Cyclical Effects in Job Reallocation and Labour Mobility," CEPR Discussion Papers 5161, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:5161
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    More about this item

    Keywords

    Job creation; Job destruction; Accessions; Separations; Matched worker-firm data;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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