Have Employment Relationships in the United States Become Less Stable?

UCSD Economics Discussion Paper No. 98-15

Posted: 5 Nov 1998

See all articles by Cynthia Bansak

Cynthia Bansak

Saint Lawrence University - Department of Economics

Steven P. Raphael

University of California, Berkeley

Date Written: June 1998

Abstract

There has been considerable debate as to whether job stability has declined in the United States. This paper uses data from the Survey of Income and Program Participation (SIPP) to examine the incidence of labor market turnover between 1986 and 1993. Specifically, we calculate one- and two-year separation rates and then analyze turnover by the source of separation. We find that the incidence of job separations did not increase over the period under investigation, but appears to have declined somewhat. The only deviation from this overall trend occurs for workers between 56 and 65 years of age who experienced increased separation rates. When analyzing separations by reason, we find a decrease in voluntary inter-firm mobility from 1986 to 1992 with a slight upturn in 1993 and no clear pattern for involuntary separations. Therefore, we do not find conclusive evidence that employment relationships have become more unstable in the recent past.

JEL Classification: J60, J63

Suggested Citation

Bansak, Cynthia and Raphael, Steven P., Have Employment Relationships in the United States Become Less Stable? (June 1998). UCSD Economics Discussion Paper No. 98-15, Available at SSRN: https://ssrn.com/abstract=106609

Cynthia Bansak

Saint Lawrence University - Department of Economics ( email )

One Romoda Drive
Canton, NY 13617
United States

Steven P. Raphael (Contact Author)

University of California, Berkeley ( email )

310 Barrows Hall
Berkeley, CA 94720
United States

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