Did the Job Ladder Fail after the Great Recession?

Giuseppe Moscarini · Fabien Postel‐Vinay

83 citations0/0 files storedJournal of Labor Economics

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Labor market dynamics and wage inequality Employment, Labor, and Gender Studies Education and Labor Relations

Abstract

We study employment reallocation across employers through the lens ofa dynamic job ladder model. Workers always agree on a ranking ofemployers at all points in time and search for better jobs both offand on the job. A parsimonious version of the model fits well the timeseries of gross worker flows by employer size from newly available USdata from the Job Openings and Labor Turnover Survey. Focusing on the US experience in and around the Great Recession, our evidence indicates that the job ladder stopped working then and has not fully resumed yet.

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References

2012Who Creates Jobs? Small versus Large versus Young 1998Wage Differentials, Employer Size, and Unemployment 1989The Employer Size-Wage Effect 2002Equilibrium Wage Dispersion with Worker and Employer Heterogeneity 2002Equilibrium wage dispersion with worker and employer heterogeneity 2013The Establishment-Level Behavior of Vacancies and Hiring *2004Employer-to-Employer Flows in the U.S. Labor Market: The Complete Picture of Gross Worker Flows 2011Efficient Search on the Job and the Business Cycle

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