Firm Heterogeneity and Worker Turnover

Previous empirical analyses of job mobility focus on worker rather than firm characteristics. This paper exploits a unique data set on enterprise employment. We describe sectoral differences in turnover rates and in the persistence of turnover. We also present evidence of persistent turnover differences at the level of the individual firms — a result that is expected if firms have managers with differing ability to screen workers. When we consider the consequences to the firm of such turnover, we discover that high turnover firms are less likely to survive.