Many theoretical models of labor market search imply a tight link between worker flows (hires and separations) and job gains and losses at the employer level. We use rich establishment-level data to assess several theoretical models and to study the relationship between worker flows and jobs flows. Hires, quits, and layoffs exhibit strong, highly nonlinear relationships to employer growth rates in the cross section.
Labor Market Flows in the Cross Section and Over TimeSteven Davis, Jason Faberman and John C. Haltiwanger ,
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Journal of Monetary Economics