COLLOQUIUM ON COMPUTATIONAL SCIENCES AND INFORMATICS – A Network Theory of Inter-Firm Labor Flows – Lopez

When:
March 5, 2018 @ 4:30 pm – 5:45 pm
2018-03-05T16:30:00-05:00
2018-03-05T17:45:00-05:00
Where:
Exploratory Hall, Room 3301
Cost:
Free
Contact:
Matthias Renz
703-993-5873

COLLOQUIUM ON COMPUTATIONAL SCIENCES AND INFORMATICS

Eduardo Lopez, Assistant Professor
Department of Computational and Data Sciences
George Mason University

lopez

A Network Theory of Inter-Firm Labor Flows

Monday, March 5, 4:30-5:45
Exploratory Hall, Room 3301

 

Abstract: Using detailed administrative microdata for two countries, we build a modeling framework that yields new explanations for the origin of firm sizes, the firm contributions to unemployment, and the job-to-job mobility of workers between firms. Firms are organized as nodes in networks where connections represent low mobility barriers for workers. These labor flow networks are determined empirically, and serve as the substrate in which workers transition between jobs. We show that highly skewed firm size distributions are a direct consequence of the connectivity of firms. Further, our model permits the reconceptualization of unemployment as a local phenomenon, induced by individual firms, leading to the notion of firm-specific unemployment, which is also highly skewed. In coupling the study of job mobility and firm dynamics the model provides a new analytical tool for industrial organization and may make it possible to synthesize more targeted policies managing job mobility.