Declining Worker Turnover: The Role of Short-Duration Employment Spells
American Economic Journal: Macroeconomics
vol. 14,
no. 1, January 2022
(pp. 260-300)
(Complimentary)
Abstract
Using the Quarterly Workforce Indicators database, 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 just one or two quarters. This phenomenon is pervasive: short-term employment spells have declined across industries, firm size categories, demographic groups, and geographic regions. Using a search-and-matching model in the Diamond-Mortensen-Pissarides tradition that incorporates noisy signals about the quality of a worker-firm match, we argue that improved screening by workers and firms can account for much of the decline in short-lived employment spells.Citation
Pries, Michael J., and Richard Rogerson. 2022. "Declining Worker Turnover: The Role of Short-Duration Employment Spells." American Economic Journal: Macroeconomics, 14 (1): 260-300. DOI: 10.1257/mac.20190230Additional Materials
JEL Classification
- E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
- J23 Labor Demand
- J41 Labor Contracts
- J63 Labor Turnover; Vacancies; Layoffs
- M51 Personnel Economics: Firm Employment Decisions; Promotions
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