We report results indicating that job turnover is not countercyclical in general but rather reflects the inability of smooth labor adjustment through the use of temporary employment contracts. Service establishments with a high share of temporary employment exhibit acyclical job reallocation, while only permanent jobs within manufacturing are found to be countercyclical.
Economics Bulletin
Temporary Contracts and the Dynamics of Job Turnover
Reference
Arai, Mahmood and Fredrik Heyman (2004). “Temporary Contracts and the Dynamics of Job Turnover”. Economics Bulletin 10(4).
Arai, Mahmood and Fredrik Heyman (2004). “Temporary Contracts and the Dynamics of Job Turnover”. Economics Bulletin 10(4).
Authors
Mahmood Arai,
Fredrik Heyman