Understanding Declining Fluidity in the U.S. Labor Market
By Raven S. Molloy, R. Trezzi, Christopher L. Smith, A. Wozniak. 2016
138 citations recorded by the source corpus.
In this paper, we first document a clear, downward trend in labor market fluidity that is common across a variety of measures of worker and job turnover. This trend began in the early 1980s, if not somewhat earlier. Next, we present evidence for a variety of hypotheses that might explain this downward trend, which is only partly related to population demographics and is not due to the secular shift in industrial composition. Moreover, this decline in labor market fluidity seems unlikely to have been caused by an improvement in worker–firm matching or by mounting regulatory strictness in the labor or housing markets. Plausible avenues for further exploration include changes in the worker–firm relationship, particularly with regard to compensation adjustment; changes in firm characteristics, such as firm size and age; and a decline in social trust, which may have increased the cost of job searches or made both parties in the hiring process more risk averse.
Subfields: Economics and Econometrics, General Health Professions, Public Administration
View Paper: https://www.semanticscholar.org/paper/f5eb128e7fd32b31ec48b1729ce7601da51fe281
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In Economics and Econometrics
- Ron S. Jarmin
- John C. Haltiwanger
- Javier Miranda
- Ryan A. Decker
- Ufuk Akcigit
- S. Ateş
- John Van Reenen
- Thomas Philippon
In General Health Professions
Citations in the corpus
- Jobs for the Heartland: Place-Based Policies in 21st-Century America (2018, unknown): “Census Bureau, 1990 and 2000 censuses, American Community Survey; IPUMS; Autor, Dorn, and Hanson (2013); authors’ calculations.”
- Changing Business Dynamism and Productivity: Shocks vs. Responsiveness (2018, background): “Molloy et al. (2016) find that states with tighter land use restrictions as of the early 2000s did not see larger declines in labor flows in recent decades, but the effect of changes in land use regulations is unknown; Hsieh and Moretti (2017) estimate significant static misallocation from land use…”