{"title":"Business Income Dynamics and Labor Market Fluidity","authors":"Henry R. Hyatt, Seth C. Murray, Kristin Sandusky","doi":"10.2478/izajole-2021-0004","DOIUrl":null,"url":null,"abstract":"Abstract The share of the U.S. population that receives business income has increased substantially in recent decades. At the same time, worker hire and separation rates declined, with worrying implications for productivity and wage growth. In this paper, we explore the relationship between business income (BI) receipt and labor reallocation. We show that BI recipients are largely excluded from existing measures of labor reallocation. Including BI recipients reduces the measured decline from 1994 to 2014 in the hire and separation rates by 8.3–8.7%, respectively, primarily among jobs that were secondary sources of income or short in duration. We present evidence that worker transitions between wage and salary jobs and BI represent labor reallocation, as opposed to reclassification of employees as independent contractors.","PeriodicalId":37841,"journal":{"name":"IZA Journal of Labor Economics","volume":"10 1","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"4","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"IZA Journal of Labor Economics","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2478/izajole-2021-0004","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"Business, Management and Accounting","Score":null,"Total":0}
引用次数: 4
Abstract
Abstract The share of the U.S. population that receives business income has increased substantially in recent decades. At the same time, worker hire and separation rates declined, with worrying implications for productivity and wage growth. In this paper, we explore the relationship between business income (BI) receipt and labor reallocation. We show that BI recipients are largely excluded from existing measures of labor reallocation. Including BI recipients reduces the measured decline from 1994 to 2014 in the hire and separation rates by 8.3–8.7%, respectively, primarily among jobs that were secondary sources of income or short in duration. We present evidence that worker transitions between wage and salary jobs and BI represent labor reallocation, as opposed to reclassification of employees as independent contractors.
期刊介绍：
As of March 31, 2019, the IZA Open Access Journal Series will transfer to Sciendo. Please use the Springer Editorial Manager system for all submissions until February 28. During the transfer period in March 2019 you may direct your submissions to journals@iza.org. The IZA Journal of Labor Economics publishes scientific articles in all areas of labor economics. This refers to original high-quality theoretical and applied contributions on both microeconomic and macroeconomic labor-related topics. In particular, the IZA Journal of Labor Economics encourages submissions in subject areas that are closely linked to the various IZA Program Areas, ranging from education, family and environment to mobility, behavioral and personnel economics, and labor market institutions, among others. The IZA Journal of Labor Economics is part of IZA’s mission of contributing to social and economic discourse, enabling political decision-making to be based on the best available scientific knowledge. We want to stimulate research to close knowledge gaps. Hence, the IZA Journal of Labor Economics particularly welcomes contributions that provide scientifically sound answers to open and relevant questions of modern labor economics.
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