Business Income Dynamics and Labor Market Fluidity

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 (...

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Auteurs principaux:	Hyatt Henry, Murray Seth, Kristin Sandusky L.
Format:	article
Langue:	EN
Publié:	Sciendo 2021
Sujets:	labor reallocation employment dynamics self-employment business ownership j63 l26 Economic growth, development, planning HD72-88 Labor. Work. Working class HD4801-8943
Accès en ligne:	https://doaj.org/article/eaf2994c7a084be9bee1a51620a1aed0
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id	oai:doaj.org-article:eaf2994c7a084be9bee1a51620a1aed0
record_format	dspace
spelling	oai:doaj.org-article:eaf2994c7a084be9bee1a51620a1aed02021-12-05T14:11:08ZBusiness Income Dynamics and Labor Market Fluidity2193-899710.2478/izajole-2021-0004https://doaj.org/article/eaf2994c7a084be9bee1a51620a1aed02021-10-01T00:00:00Zhttps://doi.org/10.2478/izajole-2021-0004https://doaj.org/toc/2193-8997The 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.Hyatt HenryMurray SethKristin Sandusky L.Sciendoarticlelabor reallocationemployment dynamicsself-employmentbusiness ownershipj63l26Economic growth, development, planningHD72-88Labor. Work. Working classHD4801-8943ENIZA Journal of Labor Economics, Vol 10, Iss 1, Pp 149-230 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	labor reallocation employment dynamics self-employment business ownership j63 l26 Economic growth, development, planning HD72-88 Labor. Work. Working class HD4801-8943
spellingShingle	labor reallocation employment dynamics self-employment business ownership j63 l26 Economic growth, development, planning HD72-88 Labor. Work. Working class HD4801-8943 Hyatt Henry Murray Seth Kristin Sandusky L. Business Income Dynamics and Labor Market Fluidity
description	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.
format	article
author	Hyatt Henry Murray Seth Kristin Sandusky L.
author_facet	Hyatt Henry Murray Seth Kristin Sandusky L.
author_sort	Hyatt Henry
title	Business Income Dynamics and Labor Market Fluidity
title_short	Business Income Dynamics and Labor Market Fluidity
title_full	Business Income Dynamics and Labor Market Fluidity
title_fullStr	Business Income Dynamics and Labor Market Fluidity
title_full_unstemmed	Business Income Dynamics and Labor Market Fluidity
title_sort	business income dynamics and labor market fluidity
publisher	Sciendo
publishDate	2021
url	https://doaj.org/article/eaf2994c7a084be9bee1a51620a1aed0
work_keys_str_mv	AT hyatthenry businessincomedynamicsandlabormarketfluidity AT murrayseth businessincomedynamicsandlabormarketfluidity AT kristinsanduskyl businessincomedynamicsandlabormarketfluidity
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Business Income Dynamics and Labor Market Fluidity

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