Firm-to-firm labor flows and the aggregate matching function: A network-based test using employer–employee matched records

Guerrero, Omar A. and López, Eduardo (2015) Firm-to-firm labor flows and the aggregate matching function: A network-based test using employer–employee matched records. Economics Letters, 136. pp. 9-12.

Abstract

The assumption of aggregate matching functions in labor markets is tested using a network configuration model for directed multigraphs. We use employer–employee matched records of the universe of employees and firms in Finland and find that aggregate matching functions, even at the level of submarkets, cannot explain the vast majority of the observed patterns of labor flows between firms. Our findings suggest the need for theoretical frameworks that take into account the structure of labor market frictions.

Item Type: Article
Keywords: Aggregate matching function; Networks; Multigraphs; Labor reallocation; Job search; Employer–employee matched records
Subject(s): Complexity
Centre: CABDyN Complexity Centre
Date Deposited: 07 Oct 2015 14:01
Last Modified: 12 Sep 2016 14:22
Funders: not applicable
URI: http://eureka.sbs.ox.ac.uk/id/eprint/5541

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