Fujita, S., Moscarini, G. and Postel-Vinay, F.

Measuring employer-to-employer reallocation - American Economic Journal: Macroeconomics - 16(3), Jul, 2024: p.1-51

This study revisits the measurement of employer-to-employer (EE) transitions using monthly data from the Current Population Survey. It identifies a sharp rise in missing responses to employer change questions following the introduction of new survey software in 2007 and the Respondent Identification Policy in 2008–2009. The missing data is shown to be nonrandom, correlating with both observable and unobservable worker traits linked to EE mobility. To address this, the authors develop a selection model and imputation procedure. The resulting EE series corrects the downward trend post-2000 and aligns more closely with business cycle fluctuations after 2007, offering a refined view of labor market dynamics. Authors revisit measurement of employer-to-employer (EE) transitions in the monthly Current Population Survey. The incidence of missing answers to the question on change of employer sharply increases starting with the introduction of a new software instrument to conduct interviews in January 2007 and of the Respondent Identification Policy in 2008–2009. We document nonrandom nonresponse selection by observable and unobservable worker characteristics that correlate with EE mobility. We propose a selection model and a procedure to impute missing answers. Our imputed EE aggregate series no longer trends down after 2000 and restores a close congruence with the business cycle after 2007.- Reproduced

https://www.aeaweb.org/articles?id=10.1257/mac.20210076



Employer-to-Employer Transitions, Current Population Survey, Labor Mobility, Nonresponse Bias, Imputation Model, Business Cycle Congruence, Respondent Identification Policy, Survey Instrumentation, Workforce Dynamics, Panel Data, Employment Change, Selection Bias