TY  - RPRT
        AU  - Merkl, Christian
AU  - Stüber, Heiko
        TI  - Value Added, Wages, and Labor Market Flows at the Establishment Level
        PY  - 2018/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 11314
        UR  - https://www.iza.org/index.php/publications/dp11314
        AB  - In this paper, we analyze the connection between value added, wages, and labor market  flows at the establishment level. We develop a simple model to illustrate the expected comovement of these variables. For the empirical analysis, we link the new German Administrative Wage and Labor Market Flow Panel (AWFP) dataset to the IAB Establishment Panel. We show that establishments' hires rates have a positive and separations rates a negative comovement with establishment-specific value added, whereby hires react by more than separations. In addition, we provide evidence that establishments' partial equilibrium reaction is an important driver for aggregate labor market dynamics.
        KW  - labor market flows
KW  - value added
KW  - wages
KW  - administrative data
KW  - establishments
        ER  -