The Importance of Two-Sided Heterogeneity for the Cyclicality of Labour Market Dynamics

Ronald Bachmann and Peggy Bechara (née David)

No 5358, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using administrative data on individual workers' employment history and firms, we investigate the cyclicality of worker flows on the German labour market. Focusing on heterogeneities on both sides of the labour market, 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 to larger firms. Transitions between employment and unemployment at large firms are generally found to be more cyclical. However, this stylised fact disappears when the composition of the workforce is controlled for.

Keywords: employer-to-employer; job-to-job; business cycle; separations; accessions; worker flows (search for similar items in EconPapers)
JEL-codes: E24 J21 J63 J64 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2010-12
New Economics Papers: this item is included in nep-bec and nep-lab
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Citations: View citations in EconPapers (16)

Published - published in: The Manchester School, 2019, 87(6), 794-820

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Related works:
Journal Article: The Importance of Two‐Sided Heterogeneity for the Cyclicality of Labour Market Dynamics (2019)
Working Paper: The importance of two-sided heterogeneity for the cyclicality of labour market dynamics (2018)
Working Paper: The Importance of Two-Sided Heterogeneity for the Cyclicality of Labour Market Dynamics (2009)
Working Paper: The importance of two-sided heterogeneity for the cyclicality of labour market dynamics (2009)
Working Paper: The importance of two-sided heterogeneity for the cyclicality of labour market dynamics (2009)
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