Worker Types in the U.S. Labor Market
Grouping workers by patterns in employment history can help explain persistent joblessness and the quick recovery in productivity after a recession.
The Alpha Beta Gamma of the Labor Market
Based on patterns of employment transitions, we identify three different types of workers in the US labor market: α’s β’s and γ’s. Workers of type α make up over half of all workers, are most likely to remain on the same job for more than 2 years and, when they become unemployed, typically find a new job within 1 quarter. Workers of type γ comprise less than one-fifth of workers, have a low probability of staying on the same job for more than 2 years and, when they become unemployed, face a high probability of remaining jobless for more than 1 year. Workers of type β are in ...
Labor Force Exits and COVID-19: Who Left, and Are They Coming Back?
Millions of workers are still unemployed or have dropped out of the labor force. What is the likelihood that these people will return to work in the coming year?
Nominal Wage Growth at the Individual Level in 2022
Some workers have seen large changes in their wages over the past year. An analysis looks at who has experienced the most and the least nominal wage growth.
Classifying Worker Types in the U.S. Labor Market
Why some worker types have difficulty finding stable jobs can’t easily be explained by demographic characteristics.
Time Averaging Meets Labor Supplies of Heckman, Lochner, and Taber
We incorporate time-averaging into the canonical model of Heckman, Lochner, and Taber (1998) (HLT) to study retirement decisions, government policies, and their interaction with the aggregate labor supply elasticity. The HLT model forced all agents to retire at age 65, while our model allows them to choose career lengths. A benchmark social security system puts all of our workers at corner solutions of their career-length choice problems and lets our model reproduce HLT model outcomes. But alternative tax and social security arrangements dislodge some agents from those corners, bringing ...
Worker Types, Job Displacement, and Duration Dependence
The composition of the workforce has implications for the earnings consequences of a job loss and patterns in the job-finding rate.
Firms as Learning Environments: Implications for Earnings Dynamics and Job Search
This paper demonstrates that heterogeneity in firms’ promotion of human capital accumulation is an important determinant of life-cycle earnings inequality. I use administrative micro data from Germany to show that different establishments offer systematically different earnings growth rates for their workers. This observation suggests that that the increase in inequality over the life cycle reflects not only inherent worker variation, but also differences in the firms that workers happen to match with over their lifetimes. To quantify this channel, I develop a life-cycle search model with ...
Labor Force Composition during the COVID-19 Pandemic
Compared with the U.S. as a whole, the labor market in the Fed’s Eighth District experienced a slightly milder downturn from 2020 to 2021.
Neighborhood Types and Demographics
U.S. neighborhoods can be organized into five types, which have very different demographics and geographical locations.