Abstract :
Many theoreticalmodelsoflabormarketsearchimplyatightlinkbetweenworker
flows (hiresandseparations)andjobgainsandlossesattheemployerlevel.Weuserich
establishment-leveldatatoassessseveraltheoreticalmodelsandtostudytherelation-
ship betweenworkerflowsandjobsflows.Hires,quits,andlayoffsexhibitstrong,
highlynonlinearrelationshipstoemployergrowthratesinthecrosssection.Simple
statisticalmodelsoftheserelationshipsgreatlyimproveourabilitytoaccountfor
fluctuationsinaggregateworkerflowsandenableustoconstructsyntheticmeasuresof
hires, separations,quits,andlayoffsbackto1990
