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Worker inflow, outflow, and churning

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Abstract:

Linked employer–employee data from Finnish business sector is used in analysing worker turnover. The data set is an unbalanced panel with over 219?000 observations in 1991–97. The churning (excess worker turnover), worker inflow, and worker outflow rates are explained by plant and employee characteristics. The probabilities of observing non-zero churning, inflow, and outflow rates increase with plant size. The magnitudes of the non-zero churning and inflow rates depend positively on size, but the magnitude of outflow rate depends negatively on size. High-wage plants have low turnover; plants with large within-plant variation in wages have high turnover. Average tenure of employees has a negative impact on turnover. High plant employment growth increases churning and separation but reduces hiring in the next year. Also controlled are average age and education of employees, shares of women and homeowners among employees, foreign ownership, ownership changes, and regional unemployment.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840500109621

Affiliations: 1: Helsinki School of Economics, PO Box 1210, FIN-00101 Helsinki, Finland 2: Research Institute of the Finnish Economy (ETLA), Lönnrotinkatu 4B, FIN-00120 Helsinki, Finland

Publication date: June 10, 2005

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