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  5. Measuring Employer-to-Employer Reallocation

Measuring Employer-to-Employer Reallocation

  • Shigeru Fujita
  • Giuseppe Moscarini
  • Fabien Postel-Vinay
American Economic Journal: Macroeconomics (Forthcoming)

Abstract

We 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 non-random 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.

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