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What Causes Labor Turnover to Vary

Component ID: #ti263221003

Webinar: July 23, 2019

The U.S. Census Bureau and the Local Employment Dynamics (LED) Partnership in collaboration with the Council for Community and Economic Research (C2ER) and the Labor Market Information (LMI) Institute, welcomes Kristin McCue as she presents, “What Causes Labor Turnover to Vary.”

Hiring occurs primarily to fill vacant slots that occur when workers separate. Equivalently, separations occur to move workers to better alternatives.

A model of efficient separations yields several specific predictions. More generally, hires and separations are positively correlated over time as well as across industry and firm.

These predictions are borne out in the Longitudinal Employer-Household Dynamics (LEHD) microdata at the economy and firm level.

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