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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