Year: 2019
Type: report
Abstract: Using the Quarterly Workforce Indicators, we document that a significant amount of the decline in labor market turnover during the last two decades is accounted for by the decline in employment spells that last less than a quarter.Using a search and matching model that incorporates noisy signals about the quality of a worker-firm match, we show that improved candidate screening by firms can account for the decline in short-lived employment spells.Quantitative exercises show that this explanation can account for the observed changes in various labor market outcomes, whereas alternative potential explanations, such as increased hiring costs, cannot.
DOI: 10.3386/w26019
Authors: Michael Pries, Richard Rogerson
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
Funder: University of Georgia
OpenAlex ID: W2953501975