The reallocation of labour and the lifecycle of firms

Simon Burgess, Julia Lane, David Stevens

Research output: Contribution to journalArticlepeer-review


This paper uses a unique US panel dataset of firms and workers to investigate the relationship between the firm's lifecycle and the reallocation of labour. We distinguish labour reallocation associated with job reallocation, and reallocation of workers over a fixed configuration of jobs. We find that firms at the beginning and end of their lifecycles contribute disproportionately to labour market flows, with sorting between firms particularly important among young firms, whereas sorting within firms is more important among mature firms. We also find that high churning flows are associated with a lower probability of a young firm surviving.

Original languageEnglish (US)
Pages (from-to)885-907
Number of pages23
JournalOxford Bulletin of Economics and Statistics
Issue numberSUPPL.
StatePublished - Dec 2000

ASJC Scopus subject areas

  • Statistics and Probability
  • Social Sciences (miscellaneous)
  • Economics and Econometrics
  • Statistics, Probability and Uncertainty

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