Working Paper

Measuring Employer-to-Employer Reallocation


Abstract: We revisit the measurement of Employer-to-Employer (EE) transitions in the monthly Current Population Survey. We detect sharp increases in the incidence of missing answers to the relevant question starting in 2007, when the U.S. Census Bureau introduced the Respondent Identification Policy. We show evidence of non response selection by both observable and unobservable worker characteristics that correlate with EE mobility. We propose a selection model and aprocedure to impute missing answers, thus EE transitions. Our imputed EE aggregate series restores a close congruence with the business cycle after 2007, including the COVID-19 recession, and exhibits no downward trend since 2000

https://doi.org/10.21799/frbp.wp.2021.22

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Bibliographic Information

Provider: Federal Reserve Bank of Philadelphia

Part of Series: Working Papers

Publication Date: 2021-06-07

Number: 21-22