We analyze the effects of adverse selection on worker turnover and wage dynamics in a frictional labor market. We consider a model of on-the-job search where firms offer promotion wage contracts to workers of different abilities, which is unknown to firms at the hiring stage. With sufficiently strong information frictions, low-wage firms offer separating contracts and hire all types of workers ...

This paper investigates some dynamic aspects of the “smooth adjustment hypothesis” that is commonly associated with intraindustry trade (IIT). The analysis is conducted on a panel of plant-level employment data and industry-level production and trade data for Ireland. Rates of intraindustry job turnover are used as a proxy for labor-market adjustment. Three findings stand out. First, a measure ...

We study vacancies, hires, and vacancy yields (success rate in generating hires) in the Job Openings and Labor Turnover Survey, a large representative sample of U.S. employers. We also develop a simple framework that identifies the monthly flow of new vacancies and the job-filling rate for vacant positions, the employer counterpart to the job-finding rate for unemployed workers. The job-filling...

We study the role of industry conditions in the internal and external labor market for CEOs in a sample of over 60,000 firm-years from 1990-2007. Future job prospects of CEOs who separate from an employer are dependent on relative-to-industry stock performance, but not on industry stock performance, suggesting that new employers filter out industry stock returns in their evaluation of manageria...

PURPOSE We examined the effects of facility and market-level characteristics on staffing levels and turnover rates for direct care staff, and we examined the effect of staff turnover on staffing levels. DESIGN AND METHODS We analyzed cross-sectional data from 1,014 Texas nursing homes. Data were from the 2002 Texas Nursing Facility Medicaid Cost Report and the Area Resource File for 2003. Aft...

The Covid-19 pandemic that began to spread at the beginning of 2020 has greatly affected economy, including firms’ financial conditions. In this respect, micro, small, and medium enterprises (MSMEs) likely experience greater negative effects than large firms due their limited resources. Hence, study aims analyze impact on MSMEs’ performance in former Pekalongan Residency, as measured by sales t...

This paper constructs and estimates a generalized Roy model with human-capital accumulation and moral hazard to control for self-selection by executives across firms and jobs. It uses the estimated model to decompose the firm-size pay gap into five sources, namely: (1) utility from working, (2) divergence in incentives, (3) monitoring, (4) demand, and (5) human-capital accumulation. It finds no...