Munich Personal RePEc Archive

Alternative Ways of Measuring and Interpreting Worker Flows

Corseuil, Carlos H. L. (2009): Alternative Ways of Measuring and Interpreting Worker Flows.

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The present paper provides empirical evidence compatible with a proposed theoretical framework to explain the joint determination of two components of worker flows: worker replacement and job creation. We show that a negative correlation between job creation and replacement across firms emerges from such a framework. An empirical model is specified and its parameters are estimated taking into account two serious problems: measurement error and endogenous regressor. We take advantage of a matched employer-employee longitudinal database with detailed information on job and worker characteristics to tackle both issues. Our estimates confirm the negative correlation predicted by the theory.

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