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Job reallocation and average job tenure: theory and workplace evidence from Australia

Mumford, K. and Smith, P.N. (2004) Job reallocation and average job tenure: theory and workplace evidence from Australia. Scottish Journal of Political Economy, 51 (3). pp. 402-421. ISSN 0036-9292

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Abstract

We explore determinants of job reallocation, employment change and average job tenure in this paper. A model which associates technological advances with the process of economic growth is modified and analysed. The features of this model allow for the possibility of asymmetric behaviour when looking at the net change in employment. Workplace data from Australia (AWIRS95) are used to test the predictions generated from the model for both employment change and average job tenure. Results are presented that provide clear evidence as to the nature of workplaces in which net employment growth is concentrated. We find that employment growth is asymmetrically related to expected changes in demand for the output of the workplace. We also find that employment is lower for workplaces that are larger, older, have greater union density, offer higher relative earnings, or are operating in a more competitive environment. The impacts on average tenure are as expected from the model and from these changes in employment. Overall there is a substantial degree of agreement between the predictions of the model and our empirical results.

Item Type: Article
Institution: The University of York
Academic Units: The University of York > Economics and Related Studies (York)
Depositing User: York RAE Import
Date Deposited: 12 Feb 2009 12:43
Last Modified: 12 Feb 2009 12:43
Published Version: http://dx.doi.org/10.1111/j.0036-9292.2004.00312.x
Status: Published
Publisher: Blackwell Publishing Ltd
Identification Number: 10.1111/j.0036-9292.2004.00312.x
URI: http://eprints.whiterose.ac.uk/id/eprint/7495

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