Date:
Sun, 16/06/202413:15-14:45
Location:
מי תהום
Dr. Eran Hoffman
Economics Department,
Hebrew University
Moving to Fluidity: Regional Growth and Labor Market Churn
(with Monika Piazzesi and Martin Schneider)
This paper studies the connection between regional growth trends and labor market dynamics. New data on manufacturing worker flows for U.S. cities 1957-1981 show that growing cities see on average more new hires and more voluntary quits, but fewer forced layoffs. Moreover, recessions in growing cities are special in that hirings and quits are low, whereas their key feature in shrinking cities is a spike in layoffs. A model of migration and on-the-job search accounts for the common growth factors, quits, and layoffs in both the cross-section and over business cycles. Its key feature is that jobs can become at risk: they have a lower match surplus and are more likely to terminate. In growing cities, better prospects from on-the-job search lead workers to quit jobs at risk earlier, which reduces layoffs and misallocation.
Economics Department,
Hebrew University
Moving to Fluidity: Regional Growth and Labor Market Churn
(with Monika Piazzesi and Martin Schneider)
This paper studies the connection between regional growth trends and labor market dynamics. New data on manufacturing worker flows for U.S. cities 1957-1981 show that growing cities see on average more new hires and more voluntary quits, but fewer forced layoffs. Moreover, recessions in growing cities are special in that hirings and quits are low, whereas their key feature in shrinking cities is a spike in layoffs. A model of migration and on-the-job search accounts for the common growth factors, quits, and layoffs in both the cross-section and over business cycles. Its key feature is that jobs can become at risk: they have a lower match surplus and are more likely to terminate. In growing cities, better prospects from on-the-job search lead workers to quit jobs at risk earlier, which reduces layoffs and misallocation.