Labor Market Dynamics During a Period of Structural Change: California in Early 1990s

This paper contributes to the literature on labor market dynamics in four ways. First, unlike most of the existing literature, it uses the Survey of Income and Program Participation. Second, it focuses on the state of California during an economic cycle. Third, it estimates gross flows by sector, and finds significant variation in gross flows relative to employment across sectors of economic activity. Fourth, it examines the coexistence of cyclical and structural changes of California in the early 1990s. The results suggest a labor market link between structural changes and economic cycles.