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Worker Flows and Firm Dynamics in a Labour Market Model

Author

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  • Corseuil, Carlos H. L.

Abstract

In this paper we build an integrated framework of the labor market in which worker replacement, job creation and job destruction are decided simultaneously at the firm level, providing a rigorous instrument for the analysis of worker flows. The main features of the model are uncertainty related to worker X firm match quality and search frictions. Worker flow components are decided as firms learn about the quality of their matches. A negative cor- relation between replacement and job creation arises from this mechanism. The model also provides several implications for firm dynamics, which are all confirmed by related empirical papers.

Suggested Citation

  • Corseuil, Carlos H. L., 2009. "Worker Flows and Firm Dynamics in a Labour Market Model," MPRA Paper 16157, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:16157
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    File URL: https://mpra.ub.uni-muenchen.de/16157/1/MPRA_paper_16157.pdf
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    More about this item

    Keywords

    worker flows; firm dynamics;

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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