Job and Worker Flows

DOI: 10.20542/0131-2227-2015-10-62-76

N. Vishnevskaya, National Research University Higher School of Economics, 20, Myasnitskaya Str., Moscow, 101000, Russian Federation (

Abstract. Current economic literature demonstrates an increasing interest to the process of job’s creation and destruction as well to labor force turnover. The article summarizes the results of recent foreign theoretical and empirical research on various aspects of labor mobility. Particular attention is paid to the research analyzing differences in dynamics of labor and job reallocations in developed and transitional economies. The cross-country comparative analysis provide a basis for several important conclusions. Firstly, despite significant cross-country differences the dynamics of job reallocation in economies under transition exceeds on the whole those in developed countries. Secondly, the structure of the economy (manufacturing sector versus services) is one of the main factors determining both job and worker flows. Thirdly, there is an opposite relationship between the dynamics of job turnover and the size of enterprise. Small firms play a very important role in job creation, while large firms dominate in absolute numbers of jobs created. Fourthly, among the factors determining the differences in job and labor force dynamics institutional characteristics occupy an important place. This suggests that country-specific policies and institutions are likely to play an important role in determining the level of job and worker reallocation. Stringent employment protection for regular contracts is believed to have a statistically significant negative effect on the workers’ reallocation. Unemployment benefits’ generosity appears to have a positive impact on average gross worker flows. By contrast, statutory minimum wages do not seem to have any sizeable effect on gross worker flows.

Keywords: labor market, labor mobility, job turnover, labor turnover, reallocation, transition countries, market economies

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For citation:
Vishnevskaya N. Job and Worker Flows. World Eonomy and International Relations, 2015, no. 10, pp. 62-76.

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