Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/25333 
Year of Publication: 
2009
Series/Report no.: 
SFB 649 Discussion Paper No. 2009,017
Publisher: 
Humboldt University of Berlin, Collaborative Research Center 649 - Economic Risk, Berlin
Abstract: 
Using two data sets derived from German administrative data, including a linked employer-employee data set, we investigate the cyclicality of worker and job flows. The analysis stresses the importance of two-sided labour market heterogeneity in this context, taking into account both observed and unobserved characteristics. We find that small firms hire mainly unemployed workers, and that they do so at the beginning of an economic expansion. Later on in the expansion, hirings more frequently result from direct job-to-job transitions, with employed workers moving to larger firms. Contrary to our expectations, workers moving to larger firms do not experience significantly larger wage gains than workers moving to smaller establishments. Furthermore, our econometric analysis shows that the interaction of unobserved heterogeneities on the two sides of the labour market plays a more important role for employed job seekers than for the unemployed.
Subjects: 
Worker flows
accessions
separations
business cycle
job-to-job
JEL: 
J63
J64
J21
E24
Document Type: 
Working Paper

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