We find that worker turnover is more procyclical than job turnover. Procyclical worker churn result almost exclusively from job-to-job transitions. The size and cyclical properties of churn are close to uniform along the entire employment growth distribution of establishments. Even shrinking...

Using the German IAB Job Vacancy Survey, we look into the black box of recruiting intensity and hiring practices from the employers' perspective. Our paper evaluates three important channels for hiring -namely vacancy posting, the selectivity of hiring (labor selection), and the number of search...

The paper analyzes the effects of different wage cyclicalities on labor market flow dynamics. We derive a model that allows for heterogeneous wage cyclicalities across firms over the business cycle and confront the theoretical results with the new AWFP dataset. Establishments with more...

We present a non-cooperative model of a family's time allocation between work and a home-produced public good, and examine whether the income tax should apply to couples or individuals. While tax-induced labor supply distortions lead to overprovision of the public good, spouses' failure to...

This paper explores the implications of gender-based income taxation in a non-cooperative model of a couple's time allocation between market work and providing a household public good. We find that the optimal structure of differential taxation by gender is solely determined by spouses' relative...

In Germany, it has become conventional wisdom that the economic uncertainty associated fixed-term employment contracts prevents young couples from realizing their desire to have children. From a research perspective, it is however far from clear whether fixed-term contracts are the obstacle to...

We consider a bargaining model in which husband and wife decide on the allocation of time and disposable income. Since her bargaining power would go down otherwise more strongly, the wife agrees to having a child only if the husband also leaves the labor market for a while. The daddy months...

Theoretical models of downward real wage rigidity generate asymmetric wage cyclicality with real wages being rigid in "bad" times but upwardly flexible during "good". In this paper we use an administrative panel dataset from Germany to establish that such asymmetries are very salient in Germany....