The authors use establishment data from the Job Openings and Labor Turnover Survey (JOLTS) to study the micro-level behavior of worker quits and their relation to recruitment and establishment growth. They find that quits decline with establishment growth, playing the most important role at...

This paper argues that a model of the aggregate labor market that incorporates the observed extent of job-to-job transitions can explain all the cyclical volatility in vacancy and unemployment rates in U.S. data in response to shocks of the observed magnitude. The key to this result is the...