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Earnings Growth, Job Flows and Churn

April 2020

Working Paper Number:

CES-20-15

Abstract

How much do workers making job-to-job transitions benefit from moving away from a shrinking and towards a growing firm? We show that earnings growth in the transition increases with net employment growth at the destination firm and, to a lesser extent, decreases if the origin firm is shrinking. So, we sum the effect of leaving a shrinking and entering a growing firm and remove the excess turnover-related hires because gross hiring has a much smaller association with earnings growth than net employment growth. We find that job-to-job transitions with the cross-firm job flow have 23% more earnings growth than average.

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:
growth, earnings, gain, employee, employ, employed, labor, job, job growth, employment changes, employment growth, turnover, tenure, hiring, workforce, hire, wage growth, employment dynamics, growth employment, longitudinal employer, earn, transition, earnings growth

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:
Alfred P Sloan Foundation, Longitudinal Employer Household Dynamics, Individual Characteristics File, Quarterly Workforce Indicators, International Trade Research Report, Federal Statistical Research Data Center

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